Belgium: Fluxys LNG Plans Second Capacity Enhancement at Zeebrugge Terminal

Fluxys LNG has launched the binding phase of its market consultation to assess the level of demand for additional capacity at the Zeebrugge LNG terminal. Considering the growing importance of LNG in Europe’s security of supply, this is a highly attractive opportunity for LNG companies to secure long-term capacity for a variety of services with an experienced capacity provider at a key strategic location providing optimum destination flexibility throughout Europe.

In December 2007 Fluxys LNG launched a market consultation to assess the interest for additional terminalling capacity at the Zeebrugge LNG Terminal. In response, multiple shippers active in the LNG business have marked their non-binding interest for a variety of services: discharging ships with on-board regasification facilities (LNGRVs), loading and unloading of different types and sizes of LNG ships, additional flexibility and throughput capacity. Starting from this spectrum of demand Fluxys LNG established the outline of the 2nd capacity enhancement of the Zeebrugge LNG Terminal:

* Construction of a second jetty for berthing of LNG ships with a capacity from approximately 3 500 m³ LNG up to 217 000 m³ LNG, to be made available in 2014 (indicative timing),

* Construction of an additional storage tank with a capacity of 160 000 m³ LNG to be made available in 2016 (indicative timing),

* Construction of additional send-out capacity of 450 000 m³(n)/h to be made available in 2016 (indicative timing).

The preliminary studies for the project are co-financed by the European Union (Trans European Energy Networks – TEN-E).

Binding phase: range of services to pick from

Fluxys LNG now launches the binding phase of the market consultation with a concrete offer of services interested companies can secure on a long-term basis. Interested companies that did not participate in the process until now can still step in. This binding phase is being organised in accordance with the new code of conduct applicable in Belgium since January 2011.

All services are offered in a transparent and non-discriminatory way and at highly competitive, regulated tariffs offering long-term visibility on the LNG terminalling cost to take into account.

* Approximately 40 unloading slots per year, corresponding to an overall throughput capacity of 2-3 bcm of natural gas per year,

* Additional LNG storage flexibility up to 90 000 m³ LNG,

* Approximately 100 000 m³(n)/h of additional send-out capacity,

* Loading of LNG carriers of various sizes and/or ship-to-ship transfers.

Optimum destination flexibility

The binding phase of the market consultation represents a highly attractive opportunity for companies active in the LNG sector to secure access to terminalling capacity on a long-term basis with an experienced capacity provider in the strategically located Zeebrugge area. As it goes, the Zeebrugge LNG terminal is an LNG gateway into North-Western Europe offering optimum destination flexibility:

* Onward delivery throughout North-Western Europe via the East/West transmission route providing access to the UK, the Netherlands and Germany and which recently has increased in capacity,

* Onward delivery throughout North-Western Europe via the North/South transmission route providing access to France and Southern Europe and which is to increase in capacity following a recently closed market consultation,

* Trading on the Zeebrugge Hub, with a trading community of 75 members showing a balanced mix of physical and financial traders and an annual net traded volume of 62 bcm (2010),

* Delivery into the Belgian market with an annual consumption of approximately 19 bcm (2010),

* Using the ZEE Platform Service, terminal users can exchange gas between the LNG Terminal, the Interconnector Terminal, the Zeepipe Terminal and the Zeebrugge Hub without any capacity limitations and at a very attractive tariff.

* Through the LNG truck loading service, the Zeebrugge LNG Terminal also offers the opportunity to transport LNG by road as a particularly useful alternative for supplying natural gas to industrial sites in Europe where no pipeline supplies are available.

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Source: Fluxys, February 4, 2011;