BP and PetroChina secure regasification capacity at Gate LNG terminal

Gate LNG terminal, a joint venture of Dutch companies Vopak and Gasunie, has announced that energy majors BP and PetroChina International London Co. Ltd will each separately acquire two billion cubic metres (BCM) per year of regasification and corresponding storage capacity.

Gate terminal informed that both companies committed to a capacity booking for a period of 20 years, noting that the parties will continue to closely cooperate with a target of achieving a final investment decision (FID), depending on financing and receiving an exemption amongst other matters, by September 2023 and a start of commercial operations by the third quarter of 2026.

The bookings follow Gate terminal’s open season to gauge market interest in a new storage capacity of 180,000 cubic metres of LNG and a regasification capacity increase of 4 BCM per year. The increase will bring the total capacity of Gate to 720,000 cubic metres with a regasification capacity of 20 BCM per year, Gate said, adding that the expansion allows it to better contribute to the supply and availability of gas in the Netherlands and its neighbouring countries.

BP stated: “BP is pleased to have signed a long-term agreement for 2 BCMA throughput capacity at Gate terminal, Netherlands, for a period of 20 years, beginning 1 October 2026, … subject to FID due by September 2023. BP continues to look for opportunities across the gas value chain, as it sees LNG as an essential part of the energy transition and its own pivot to becoming an integrated energy company.”

Jonty Shepard, VP Global LNG Trading & Origination at BP, commented: “As BP aims for an LNG portfolio of 30 million tonnes by 2030, this award provides additional regasification capacity in a key location to support the security of supply for our European customers.”

PetroChina International London said the acquisition of import capacity underwrites vital new LNG receiving infrastructure for the Netherlands.

The company stated: “In the context of China’s ambition to achieve carbon neutrality by 2060, PetroChina International London and our parent company welcome the responsible policies taken by the EU to support the energy transition. We are pleased to enhance cooperation with European partners in green energy supply in the future.”

Jarmo Stoopman, Managing Director at Gate terminal, noted: “We received a good market response to our inquiry to increase the capacity of this crucial asset for the security of supply of gas in Europe. BP and PetroChina International London Co. are world-class LNG portfolio players and a great addition to the existing portfolio of customers. This will further enhance the security of supply to the European energy market by adding new supply sources.”