The government of Gibraltar and Royal Dutch Shell have signed an agreement for the construction of a small FSRU that will receive LNG delivered by Shell for use in an adjacent gas-fired power plant, which is already being built.
Construction of the regasification unit is set to start before the end of 2016, as commissioning and first delivery of LNG is scheduled to take place ahead of the start-up of the power plant, due in the second half of 2017.
The regas unit will be operated by Gasnor, a 100% Shell-owned subsidiary, who will help to store LNG onsite and ensure a stable gas supply to the power plant. The unit includes a berth for a small LNG carrier, and the Maltese government wants LNG to be supplied at night to minimise disruptions.
Chief Minister Fabian Picardo called the integrated project a “major step forward in the provision of LNG, the best option for an environmentally-friendly and safe solution for guaranteed power generation.” In his view, the project marks a “massive advance also in respect of guaranteeing the integrity and security of electrical supply for Gibraltar for the next thirty years.”
Maarten Wetselaar, director of Shell Integrated Gas added that the project “proves once again that small-scale projects can deliver big benefits and bring more clean-burning gas to the markets that want it.”