LNG

Repsol has inaugurated its second supply terminal for liquefied natural gas bunkering for ships arriving in the northwest Spanish port city of Santander, especially its main customer Brittany Ferries.

The inauguration ceremony was attended by regional authorities and Repsol’s divisional Executive Managing Director Juan Abascal.

The new facility has a cryogenic tank with a storage capacity of 1,000 cubic metres in addition to the terminal that Repsol already has in the nearby port of Bilbao.

“This new terminal, that we have just inaugurated is another step in Repsol's commitment to the energy transition and the decarbonization of the maritime sector,” said Repsol’s Abascal.

Both terminals are part of the collaboration agreement that Repsol signed with French shipping company Brittany Ferries in 2019 for the supply of LNG as maritime fuel for its operations in Spain.

Flexibility

“In the design of the Santander terminal, operational flexibility has prevailed, allowing access for any type of vessel and also covering the needs for LNG refuelling of a medium-sized vessels,” said Repsol.

“In addition, the facility allows the simultaneous loading of passengers and fuel, optimizing operations on land and in maritime traffic, which leads to a reduction of emissions in port operations,” Repsol added.

The Brittany Ferries vessel “Santoña” will carry out regular operations at thr new facility in the port of Santander.

The new terminal is co-financed by the European Commission through the CEF-Connecting Europe Facilities Program.

“Advancing towards a carbon-neutral economy is a key priority of the European Commission,” said Richard Ferrer, Head of the Transport Innovation Team at the European Climate, Infrastructure and Environment Executive Agency.

Brittany Ferries, the French line that links the UK with Spain and France, has also been introducing newbuild roll-on-roll-off passenger and freight vessels connecting Portsmouth in England with two French ports.

The Brittany Ferries services cover a dozen ports: Spain’s Bilbao and Santander, the UK’s Portsmouth, Poole and Plymouth, the Irish port of Cork and the French ports of Caen, Cherbourg, Le Havre, Ouistreham, Saint-Malo and Roscoff.

Enagás, the Spanish gas grid and liquefied natural gas terminal network operator, and maritime fuels company Peninsula Petroleum Ltd, have signed a joint venture deal for the building and charter of an LNG bunkering vessel based at the Port of Algeciras to serve the Strait of Gibraltar shipping lanes.

The bunkering vessel with capacity of 12,500 cubic metres will be built at the South Korean Hyundai Mipo Dockyard shipyard and is expected to be delivered in the third quarter of 2023.

The vessel will be chartered by Peninsula through an initial seven-year contract. It will load LNG fuel at Enagás regasification terminals, mainly the one at Huelva in southwest Spain.

The Enagás subsidiary called Scale Gas signed the agreement with Peninsula.

The LNG bunkering project will be co-financed by the European Union to the tune of €11 million ($13.3M) as part of the EU Connecting Europe Facility (CEF) transport aid programme.

The financing is available as part of the EU’s support of the development of LNG as a maritime fuel to help avoid sea pollution and to improve air quality in ports.

“The signing of this agreement is in line with Enagás’s commitment to promoting the development of a value chain that allows more efficient and sustainable maritime transport,” said Marcelino Oreja, Chief Executive of Enagás .

John A. Bassadone, the CEO and founder of Peninsula, said the project would serve a growing market and promote cleaner fuel.

“Peninsula and Enagás share the vision of developing the use of LNG as a transitional maritime fuel,” explained Bassadone.

“Having the support of a partner like Enagás is incredibly positive and exciting,” he stated.

Also party to the agreement is the Spanish Port Authority of Algeciras.

“We have been working intensely to promote alternatives to current fuels and developing the use of LNG as a proven technology that is currently available to serve ship owners already asking for LNG in the Port of Algeciras,” said Gerardo Landaluce, President of the Algeciras Port Authority

“Two years after the signing of this agreement, supported by Enagás and along with the co-financing of the European Union, the Bay of Algeciras will have a stable LNG bunkering supply service,” added Landaluce.

The Republic of Cyprus, which is part of the European Union, has posted tender documents for the supply and operation of a floating liquefied natural gas import facility to be located at the Cypriot port of Vassilikos and partly funded by the EU.