Qatar Petroleum signed a long-term agreement with Fluxys Belgium for LNG unloading services at the Zeebrugge LNG terminal, the company announced on Monday.
Qatar Terminal Limited (QTL) - a subsidiary of Qatar Petroleum - is already a party to an existing agreement under which approximately 50% of the terminal’s capacity is utilized for delivery of Qatari LNG into Belgium under long-term LNG agreements. Under the new agreement, QTL will subscribe to the full capacity at the terminal from the expiry of the existing long-term unloading contracts and up to 2044.
The transaction follows a competitive evaluation process as well as the approval of the Belgian regulators.
The agreement was signed during a ceremony held in Brussels by Saad Sherida Al-Kaabi, minister of state for energy affairs, the president and CEO of Qatar Petroleum, and Pascal De Buck, chairman and CEO of Fluxys Belgium.
Speaking at the signing ceremony, Al-Kaabi said, "We are delighted to sign this landmark agreement to extend and expand our existing long-term partnership with Fluxys Belgium for decades to come. We believe this arrangement will further support our customers in Belgium and Europe in general, by providing access to reliable LNG supplies from Qatar and allowing our customers to maximize the utilization of such supplies."
"Qatar Petroleum has long invested in and anchored LNG receiving terminal capacity in Europe, a key gas market, as part of our supply destination portfolio diversification strategy. We continue to be committed to supporting the EU’s energy policies and providing reliable energy supplies into Europe," Al-Kaabi added.
He said that this new capacity would, "in no doubt", enhance the position of Zeebrugge among the most commercially competitive terminals in Europe.
De Buck also acknowledged the agreement as a milestone for Fluxys Belgium.
"This agreement further extends our long-standing cooperation with our Qatari partners, secures long-term activity at the Zeebrugge terminal and further strengthens the facility’s position as a versatile LNG gateway into Europe offering customers optimum destination flexibility," De Buck said.
He added that ample pipe gas take away capacity from the terminal is readily available for delivery throughout northwest Europe as well as a range of options for downstream small-scale LNG distribution.
The Zeebrugge LNG Terminal in Belgium was commissioned in 1987. It has since developed, together with the Zeebrugge area as a whole, into a central crossroads for northwest Europe's gas network. Located at the point where a number of gas pipelines meet, the terminal plays a key role in Europe's natural gas supplies.
Fluxys LNG, a part of Belgian independent natural gas transport company Fluxys, operate the terminal.
The terminal currently has 380,000 cubic meters of LNG storage capacity spread over four tanks and an annual throughput capacity of 9 billion cubic meters of natural gas.
A fifth 180,000 cubic meters storage tank is currently under construction.
By Murat Temizer