Friday, December 7, 2007
Gate LNG Terminal Delayed; RWE to Buy Stake in Excelerate
7 December 2007
Global Insight Daily Analysis
Zoe Grainge
Construction start-up at the proposed Gate LNG regasification terminal in the Dutch port of Rotterdam is reportedly being delayed because not enough throughput agreements have been signed. According to European Spot Gas Markets, the terminal's developer Dutch utility Gasunie said everything else was in place for construction to commence except these agreements. It was suggested the delay was a result of the difficulty of Gate LNG customers securing LNG supply to feed in to the terminal. Gate Terminal is a joint venture between Gasunie and storage company Vopak. To date, oil giant Shell has signed a Heads of Agreement to take 4 bcm/year (Gm3/year) of throughput capacity while Germany’s RWE and France’s Electricité de France (EdF) have signed up for 3 Gm3/year each. Both RWE and EdF said they would take a 10% equity stake in the terminal. Separately, RWE is negotiating with Excelerate Energy to acquire up to a 50% stake in the company, according to reports.
Excelerate has developed gas ships that re-gasify LNG on board, making re-gasification terminals unnecessary. Significance: RWE already markets Excelerate's natural gas landed at an import facility in Teesside, the United Kingdom. The two companies also plan to co-operate on a planned LNG facility in Wilhelmshaven, Germany, for which a feasibility study is currently being undertaken by authorities. Wilhelmshaven is managed by RWE's rival German utility E.ON, which is investing in LNG projects to diversify its natural gas supply sources.
