Novatek, Fluxys Plan German LNG Bunkering

Russian independent producer Novatek and Belgian gas infrastructure owner Fluxys have leased land from Rostock Port on the Baltic coast of eastern Germany to build a mid-scale LNG transshipment terminal for onward trucking, they said October 17.

A joint venture will design, construct, finance, own and operate the 300,000 metric tons plant, which will receive LNG carriers from the Cryogas-Vysotsk liquefaction facility that Novatek is building in the port of Vysotsk near the Saint Petersburg area.

The LNG terminal is designed for onward trucking of LNG to consumers and also for carrying out bunkering operations. "One of our LNG strategic initiatives is to develop small- to medium-tonnage projects to target niche markets and customer segments,” said Novatek CEO Leonid Mikhelson. “This approach allows us to build effective marketing channels on different markets. Moreover, the LNG terminal at Rostock allows us to market LNG as a marine fuel and motor fuel instead of diesel and fuel oil that will contribute to decreasing emissions and improving the environment,” he said.

Competitors such as Skangas and Linde-owned Nauticor are already active in LNG bunkering in the Baltic. Nauticor  runs a mini-liquefaction unit at Nynashamn in Sweden and in February conducted the largest ever German LNG bunkering operation, albeit at a North Sea port. As such Novatek would expand the number of suppliers to shipowners, while Fluxys is keen to expand such infrastructure.

Fluxys managing director Pascal De Buck said his firm was pleased to team up with Novatek in the venture: "The Rostock project will allow industry, ship owners and haulage companies to significantly cut emissions impacting health and air quality as well as reducing their carbon footprint.” (Banner photo of the port is courtesy of Rostock Port)

Gazprom and Shell meanwhile continue to discuss their potential 10mn mt/yr Baltic LNG project planned at the Russian port of Ust Luga.