Gibraltar and Shell strike LNG fuel deal

Thursday, 05 November 2015

Gibraltar has selected Shell Gas and Power BV to store and supply LNG for the small scale LNG terminal for state utility GibElec.

“Shell are building the LNG storage plant in Gibraltar to provide gas for our new power station but LNG bunkering remains an aspiration for the future,” Stuart Green, HM Government of Gibraltar’s senior press officer explained to LNG Fuelling.

The government of the British island territory has said in response to queries from the opposition that "LNG bunkering facilities will be immediately available; Gibraltar has the capacity and trained professional staff to be able to conduct these operations safely and securely.”

It has also released reports evaluating the safety of Shell’s small scale LNG terminal designs, but which recommended further reports be made for LNG bunkering facilites.

The reports were completed by UK government agency Health and Safety Laboratory (HSL) and UK maritime services body Lloyd’s Register.

HSL said Shell’s terminal proposal included a bund, tanks, and an impounding basin on a rocky mole in the harbour. It featured five LNG storage tanks with 1,000 cubic metres capacity with facilities to supply an adjacent new diesel-and-LNG-fuelled power plant. A cruise ship terminal is located on the South side of the harbor.

All refuelling would only occur at night when twice a month and Shell will use propriety arm technology with automatic sealing capability instead of hoses, reported the news website, Gibraltar Panorama.

Shell and HSL are now working on a consultation process involving the local community.

Stolt-Nielsen invests in HIGAS

A subsidiary of Norwegian terminal and tanker operator Stolt-Nielsen has gained 10 percent interest in a joint venture to build an LNG terminal and bunkering facility in Sardinia, off the coast of Italy.

HIGAS is an existing venture of Italian containment company Gas and Heat and multi-utility group CPL Concordia.

The venture will build and operate the LNG terminal and distribution facility in the Sardinian port of Oristano. Stolt-Nielsen has the option to acquire 80 percent.

The LNG is to be shipped to the terminal by 5,000-7,000 cubic meters capacity LNG carriers and distributed to customers via pipeline and trucks.

This facility, the third LNG investment by Stolt-Neilsen Gas, has been dubbed “the first LNG bunkering facility in the Mediterranean,” and is expected to begin operations in 2017.