Gazprom and Fluxys sign LNG cooperation agreement

Companies to collaborate on the construction and operation of LNG receiving terminals, LNG filling stations, and LNG bunkering infrastructure in Europe.



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Updated on 30 Mar 2016 11:02 GMT

Gazprom and Fluxys have signed a framework agreement on small-scale liquefied natural gas (LNG) cooperation in the European market.

The agreement was signed in Paris, on March 29, by Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee, and Pascal De Buck, Fluxys Managing Director.

As part of the agreement, both companies intend to collaborate on joint projects for the construction and operation of LNG receiving terminals, LNG filling stations, and LNG bunkering infrastructure in Europe.

"Small-scale LNG is not just a cost-effective and eco-friendly alternative to conventional fuels in different fields of economy including industry and transport. It is one of key growth areas in European gas consumption. By developing this segment, Gazprom will further diversify its export potential and increase sustainable supplies of energy to Europe," Alexander Medvedev said in a statement.

"Developing the required infrastructure for small-scale LNG is key to implementing the EU's sustainable strategy for alternative fuels. It will enable small-scale LNG to further unlock its vast potential for mitigating the environmental impact of waterborne and heavy transport, as well as for powering the remote industrial sites not connected to gas trunklines," commented Pascal De Buck.

Fluxys

Fluxys is a Belgium-based gas infrastructure group. The company is a leading gas transit operator and its offering combines gas transmission, gas storage and terminalling of LNG.

Besides its pipeline, storage and LNG terminalling assets in Belgium, Fluxys' partnerships include ownership in the Interconnector and BBL pipelines linking the UK with mainland Europe, the Dunkirk LNG terminal in France, the NEL and TENP pipelines in Germany, the Transitgas pipeline in Switzerland and the Trans Adriatic Pipeline (TAP) pipeline from Turkey to Italy.

Fluxys is also joint owner of Swedegas with Spanish company Enagas. Swedegas is the owner and operator of the Swedish gas transmission grid and is involved in the construction and operation of the new LNG terminal in Gothenburg. Last week, Swedegas confirmed that it is examining the potential for establishing a gas infrastructure in the Gavle region, located in east central Sweden.

Gazprom

Gazprom is the owner of Gazpromneft Marine Bunker, which last week reported that it sold 3.7 million tonnes of marine fuel in 2015 and has a 21 percent share of Russia's bunkering market.

Last year, in September, company representative Vasily Tkachenko was cited as saying that St. Petersburg-based Gazpromneft Shipping plans to begin carrying out deliveries of LNG in 2017.

Speaking at the 'Advanced port fleet- the basis of safety' conference in St. Petersburg, Tkachenko said that the first LNG bunkering operation would be carried out in the Baltic Sea Basin.

Gazpromneft Shipping was established in December 2008 in order to carry out the operational management of Gazpromneft Marine Bunker's own fleet. The vessels currently operating under Gazpromneft Shipping's management, according to the firm's website, are: Gazpromneft Zuid East, Gazpromneft Zuid West, Gazpromneft Omsk, Gazpromneft Nord East, Gazpromneft East, Gazpromneft West, Gazpromneft Nord, Gazpromneft Zuid, Gazpromneft Nord West.

Gasum and Skangas

Gazprom also has a 25 percent stake in integrated gas company Gasum Oy, which is 75 percent owned by the Finnish government. Earlier this month, Skangas - which is owned by Gasum (with a 51 percent shareholding) and Norway's Lyse Group (with a 49 percent stake) - reached an agreement with Lyse Group to acquire the Risavika LNG production plant, located in southern Norway.

Last year, Skangas also launched the first ever LNG bunkering station in the Nordics - located in Risavika. The bunkering station is situated very close to the main trade route that runs along Norway's west coast.

Skangas is also building an LNG terminal at the Port of Tahkoluoto in Pori, Finland, and is co-owner of an LNG terminal under construction in Tornio, Finland.

Norway-based Skangas carries out LNG supply deliveries in the Baltic Sea, North Sea and in the Amsterdam-Rotterdam-Antwerp (ARA) region via truck, barge and pipe. According to the company's website, it carried out 1,360 ship bunkering operations and 5,712 truck loading operations in 2014.

In January, Skangas bunkered the M.V. Greenland - the world's first LNG-powered cement tanker - with LNG for the first time in Westport Stavanger, Norway.