HM Government of Gibraltar, Shell sign agreement

Her Majesty’s Government of Gibraltar and Shell have recently signed an agreement for the supply of liquefied natural gas (LNG) for use in power generation in Gibraltar. This agreement includes the construction of a small regasification unit that will receive, store and re-gasify the LNG arriving by ship for use in Gibraltar’s adjacent gas-fired power plant, which is already under construction.

The regasification unit will be operated by Gasnor, a 100% Shell-owned subsidiary with over ten years of operational experience in LNG for marine and small-scale LNG in North Western Europe. The regasification unit’s five double wall stainless steel tanks will have a capacity of 1000 m³ each. The LNG will be stored before being warmed up to its original gaseous state and then piped to the power plant. The unit will also include a berth for a small LNG carrier that will supply the LNG at night, minimising disruption to the neighbouring port, airport and housing estates.

Following the recent approval of a robust Environmental Impact Assessment report, construction of the regasification unit is planned to start towards the end of 2016 with commissioning and first delivery of LNG expected to take place ahead of the start-up of the power plant, expected during the second half of 2017.

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