Monday, January 14, 2008
Further Zeebrugge LNG Terminal Expansion Faces Delays
14 January 2008
Global Insight Daily Analysis
Zoe Grainge
The further expansion of the LNG terminal at Zeebrugge in Belgium, due online early this year, is not yet ready for commissioning, European Spot Gas Markets reported. According to reports, a spokeswoman for grid operator Fluxys reiterated the new capacity would be commissioned in the “near future”, as was announced in mid-December. Long-term contracts are already in place with Qatar Petroleum and ExxonMobil (55 slots), Distrigas (33 slots), and—entering into the terminal’s capacity for the first time—Suez LNG Trading (22 slots). The expansion is set to double capacity at the terminal from 4.5 bcm/year to 9.0 bcm/year. At present, Belgium's Distrigas and France's EDF Trading have signed deals with Rasgas to bring cargoes into the terminal. Data from Lloyd’s Maritime Intelligence show Distrigas is receiving regular fortnightly cargoes, but that EDF Trading has used fewer of its slots.
A new Internet-based platform to trade secondary capacity at the Zeebrugge hub, including the expanded LNG terminal, the Zeebrugge Platform Service, is also still expected to come onstream “early this year”, the Fluxys spokeswoman said. Originally, the platform was scheduled for a 2007 start-up.Significance: Fluxys announced last October it was considering further expanding the LNG import terminal in Zeebrugge. The terminal is already in the middle of a project to double capacity to 9 bcm/year. The group planned to conduct a survey at end-2007 to assess interest in reserving any expanded capacity. A pre-feasibility study already showed that, in line with the strategic plan for the port of Zeebrugge, the LNG terminal's capacity could be increased even further after the current expansion. In the 20 years the LNG terminal has been receiving ships, natural gas consumption in Belgium has nearly doubled from 8 bcm/year to 17 bcm/year (see United Kingdom-Belgium: 8 October 2007: ).
