Novatek, Fluxys to Build LNG Terminal in Rostock, Germany
- Business & Finance
A joint venture between Novatek and Fluxys signed a land lease agreement with the Port of Rostock for the construction of a mid-scale LNG transshipment terminal located in this German port.
The envisaged facility is expected to unlock LNG as a low-emission alternative for heavy fuel oil, diesel and LPG in North and Central Europe and the Baltic Sea area.
Rostock LNG GmbH joint venture intends to design, build, finance, own and operate a terminal for receiving and unloading mid-scale LNG carriers from the Cryogas-Vysotsk liquefaction facility that Novatek is currently constructing in the Port of Vysotsk near the Saint-Petersburg area.
In addition, the JV will provide services to enable downstream distribution of LNG — reloading to supply LNG amongst other as bunker fuel for ships operating in the Baltic Sea as well as truck loading.
The new facility will have a capacity of approximately 300 thousand tons per annum.
“One of our LNG strategic initiatives is to develop small- to medium-tonnage projects to target niche markets and customer segments (…) This approach allows us to build effective marketing channels on different markets. Moreover, the LNG Terminal at Rostock allows us to market LNG as a marine fuel and motor fuel instead of diesel and fuel oil that will contribute to decreasing emissions and improving the environment,” Leonid Mikhelson, Novatek’s Chairman of the Management Board, said.
“Gas and gas infrastructure are key to develop a sustainable, reliable and affordable energy system and the Rostock project will allow industry, ship owners and haulage companies to significantly cut emissions impacting health and air quality as well as reducing their carbon footprint,” Pascal De Buck, Managing Director of Fluxys, commented.
Following the signature of the land lease agreement, Rostock LNG GmbH (Novatek 49% – Fluxys 51 %) is to proceed with the engineering and permitting processes.