Gate terminal starts construction of fourth LNG tank at port of Rotterdam

Gate terminal starts construction of fourth LNG tank at port of Rotterdam

August 26, 2023

Gate terminal and its shareholders Gasunie and Vopak, announced that the final investment decision has been taken to expand Gate terminal’s storage and regasification capacity.

In particular, the expansion consists of a new LNG storage tank of 180,000 cubic meters and additional regasification capacity of 4 BCM per year.

The new capacity is already rented out under long term commercial agreements and is expected to be ready for operation by the second half of 2026.

More specifically, Vopak and Gasunie are the founders and owners of Gate terminal in Rotterdam which has been operational since 2011. The terminal plays a crucial role in the supply and availability of gas in the Netherlands and its neighboring countries.

Once all envisaged projects at Gate terminal have been completed, the terminal will have a total regas capacity of 20 billion cubic meters per year.

Hans Coenen, on behalf of the board of directors of Gasunie, “The investment in this new tank is part of a broader package of proposed and already realized measures to increase LNG import capacity in the Netherlands. This is necessary to compensate for the loss of Russian natural gas and to reduce the scarcity of natural gas on the European gas market. In addition to expanding LNG import capacity, Gasunie is continuing to accelerate the energy transition.”

Finally, the total investment is approximately US$378 million. The envisaged financing structure of this expansion is approximately 15% of the costs to be funded with equity and approximately 85% to be funded via a non-recourse project financing for which commitments are in place.

The project financing is expected to be finalised by the end of 2023. The equity contribution of each of the shareholders will be approximately US$28 million with a cash out expected in the coming years.

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