Gibraltar Launches LNG Import Terminal

Gibraltar has officially opened a new liquefied natural gas (LNG) import terminal that was recently completed by Shell and Gasnor (a 100% Shell-owned subsidiary), the Anglo-Dutch major said May 7.  As a result, Gibraltar is switching from diesel-fuelled power generation to cleaner-burning natural gas, using a newly commissioned 80-MW gas-fired power plant.

Gibraltar's Chief Minister Fabian Picardo said he was proud of the switch to cleaner generation, as a result of which the British overseas territory "can now look forward to at least 20 years of clean, safe, gas-fired power generation from the port. This is a wonderful step-change in technology.”

Construction of the terminal followed an LNG supply agreement signed in 2016 between Shell and Gibraltar.  Gasnor, which has more than 15 years of operational experience in small-scale LNG in north-west Europe, operates the regasification terminal.

“I would like to congratulate Gibraltar on bringing its vision of a cleaner energy system to reality,” said Shell's integrated gas head, Maarten Wetselaar. "Delivering this project is a tangible example of Shell’s strategy to provide more and cleaner energy. We believe that projects like this can offer real benefits elsewhere in the world.”

Shell hopes to replicate the approach taken in Gibraltar in other parts of the world, where there is a need for cleaner, more reliable energy through similar small-scale LNG projects.

LNG will be delivered to the terminal by ship twice a month and at night, minimising disruption to the neighbouring port and airport. It will be stored in five double-walled stainless-steel tanks, each able to hold 1,000 m³ of LNG. The first LNG cargo arrived in January to support testing and commissioning of the power plant.