Vopak takes hit for pulling out of Elbe LNG but proceeds in China

Tuesday, 23 November 2021
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LNG News Editor: 

Royal Vopak, the Dutch global hydrocarbon storage company and project developer, has taken an earnings hit for pulling back from Germany’s main LNG import terminal project near Hamburg, while preferring to proceed with a Hong Kong LNG terminal venture.

Germany’s main onshore LNG terminal project is being develop at Brunsbüttel on the Elbe River.

The joint venture for building and operating the terminal is owned by Vopak, Dutch utility Gasunie as well as Oiltanking GmbH, a subsidiary of fuel company Marquard & Bahls AG, based in Hamburg.

Vopak and Gasunie are behind the main Dutch Gate LNG terminal at Rotterdam, while Vopak has stakes in other LNG import terminals at Altamira in Mexico and at Port Qasim in Pakistan.

“After a strategic review, Vopak decided to discontinue its active participation in the German LNG project leading to an exceptional loss of €11.1 million ($12.7M),” said Vopak in its third-quarter earnings.

“However, we remain optimistic in other LNG growth projects, such as Hong Kong, which are progressing well,” stated the company.

Vopak describes the Hong Kong venture as the world’s largest FLNG project.

The company also reported on events at its other LNG terminals, including the 400th ship-to-ship transfer in Pakistan and the signing of a new supply deal at the Altamira facility on the coast of the Gulf of Mexico.

The German Brunsbüttel terminal project is still going ahead, offering loading and unloading of LNG carriers, the temporary storage of LNG, regasification and access to the German gas grid and distribution of LNG via tank trucks and LNG railcars.

Vopak posted increased revenues in the three months to the end of September of €309.5 million compared with €297.0M in the same quarter of 2020.

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