Gate terminal starts construction of 4th LNG tank
Gate terminal, jointly owned by Gasunie and Vopak, has made the final investment decision to expand its storage and regasification capacity, Vopak announced on August 23.
The expansion plans include the construction of a new LNG storage tank with a capacity of 180,000 m3 and additional regasification capabilities totaling 4bn m3/year. These new capacities are already committed under long-term commercial agreements and are projected to be operational by the second half of 2026.
With the completion of all envisioned projects at Gate terminal, its total regasification capacity will reach 20bn m3/year, Vopak said.
Hans Coenen, speaking on behalf of Gasunie's board of directors, said this expansion is to address the shortfall in Russian natural gas supply and alleviate natural gas scarcity in the European market. “In addition to expanding LNG import capacity, Gasunie is continuing to accelerate the energy transition. For example, through the construction of a national hydrogen network and the conversion of import terminals. We will also continue to focus on green gas, transport of heat and CO2 capture and storage,” he added.
Vopak's CEO, Dick Richelle, said this investment aligns with Vopak's strategic growth in LNG infrastructure, a vital component for ensuring secure energy supply.
"Now that all elements are in place, we are happy that today we can start with the construction of this important expansion. We look forward to working with our contractors and ensuring a safe and timely construction of this 4th tank," said Jarmo Stoopman, the managing director of Gate terminal.
The total investment for this expansion amounts to approximately €350mn ($380mn). The financing structure involves about 15% of the costs being funded through equity, while approximately 85% will be supported by a non-recourse project financing.
Vopak stated that commitments are already in place for the project financing, which is anticipated to be finalised by the end of 2023. Each shareholder will contribute around €26mn in equity, with disbursements scheduled over the coming years.