Frequently asked questions

Liquefied Natural Gas – or LNG – is a clear, odourless liquid produced by cooling natural gas to minus 162°C. In this liquid state, the volume of LNG is about 600 times less than that of natural gas. It can therefore be stored and transported very efficiently. If gas needs to be carried over long distances, LNG is a particularly good alternative to gas transport by pipeline.

Most LNG comes from areas where large volumes of natural gas have been discovered such as North Africa, the Middle East and the West Indies. Countries that produce LNG include Trinidad, Nigeria, Algeria, Egypt, Oman, Qatar, Indonesia, Malaysia and Australia.

Natural gas supplies in northwest Europe, including the Netherlands, are projected to fall in the foreseeable future, yet demand will continue to grow. To avoid shortages, an additional supply of natural gas is required, either through the import of natural gas by pipeline, principally from Russia, or through the shipment of Liquefied Natural Gas (LNG). An LNG terminal would be a decisive factor to increase imports of gas from other countries and sources to northwest Europe. It would improve not only the security of supplies but also the ability of new players to enter the northwest European gas market.

Demand for natural gas is forecast to rise sharply. In northwest Europe, it was expected to increase from 340 billion cubic metres (BCM) in 2003 to 440 BCM in 2010 (Eurogas annual report, 2003-2004, page 29). The main customers are electricity companies, chemical and petro-chemical companies, countless other industries, businesses and private individuals. The growing demand is being fed by three main developments:

• greater welfare in the European Union accompanied by higher energy consumption;
• a sharp increase in the use of natural gas in preference to coal to generate green electricity;
• the enlargement of the European Union and the attendant increase in welfare in the new member states.

Demand is expected to be tempered, though, by increased efficiency in the domestic use of gas.

Liquefied petroleum gas (LPG) and LNG are often confused with each other. LPG consists chiefly of propane (C3H8) and butane (C4H10), and is used mainly in domestic and commercial applications (such as fuel for cars). LPG is liquefied by holding it under high pressure. LNG, by contrast, is a liquid at atmospheric pressure but at a very low temperature (approx. – 162°C). LPG's specific gravity is also totally different from LNG's: components are lighter than air and the gas does not disperse if it escapes. LNG (natural gas), by contrast, is heavier than air and disperses and rarefies very quickly into a mixture that is no longer flammable. The storage of LPG at pressure, unlike the storage of LNG at low temperature, requires the use of very different equipment (other material properties, thicknesses, insulation) and standards.

There are terminals in Belgium, France, Spain, Portugal, Italy and Great Britain. Several European countries also have plans to build more terminals and to expand existing terminals. This shows how important many people think LNG is as a reliable source of energy. Several LNG terminals have been operating in Europe since the 1970s and further growth in the number of receiving stations is forecast in the coming decade.

• Fluxys Zeebrugge (Belgium)
• Grain LNG (Great-Brittain) 
• Sines LNG (Portugal) 

There are also terminals in North and Central America and in Asia and several new construction projects are underway.

A lot of gas is already piped from neighbouring countries to the Netherlands. But the volume of LNG is far less than that of natural gas (the necessary storage space is 600 times smaller). This makes it a lot easier to transport LNG over long distances. This is significant for countries that have substantial natural gas reserves but lack the infrastructure necessary to pipe gas to consumer markets. Furthermore, natural gas produced as a by-product (associated gas) during oil extraction is currently flared off but could be put to far better use as LNG. When will the Netherlands run out of gas? Many studies have been made of the development of energy policy in the years ahead. Further information is available at www.energieraad.nl and www.minez.nl.

There has been done much research focused on the development of a energy policy for the coming years. Have a look at the following website: www.energieraad.nl or www.minez.nl.

The storage of LNG fits perfectly into the strategy growth of Vopak. Global demand for LNG will increase significantly, including the strong growth in demand for cleaner fuels (gas is the cleanest fossil fuel) but also the desire to strategically diversify the energy dependence. Vopak has extensive experience in managing independent terminals, handling cargoes arriving by tanker,  and efficient stock for different combinations of customers. In this case, developing the terminal concept is a new product Vopak. For Vopak, as an independent terminal operator, the development of a terminal concept for a new product is key. This is one of our lines of growth based on a trusted business model. Ultimately we want to satisfy our customers worldwide. Vopak envisions a diversification at user side and liberalization of the distribution channel. This underlines the need for independent parties for the infrastructure.

For infrastructure company Gasunie, Gate terminal is a location where a large amount of new gas comes into the Gasunie grid, both for use in the Netherlands as a transit to neighboring countries. This reinforces the role of the Netherlands as a European gas roundabout. Gasunie and Vopak also want to support the companies who will deliver and buy gas from a terminal providing the best logistics and efficient management of the terminal. Gasunie itself also has a special interest in technical solutions which guarantee a good fit to the Dutch gas transport network.

Also in the future, The Netherlands want  to play a key role in the trade of gas. The Netherlands has a strong position with its gas production and storage and the extensive network of pipelines. Through new pipeline connections to for example the UK and also from Russia, but also including LNG terminals, this will strengthen this position. Gate terminal plays an important role in the further development of the Dutch gas roundabout. This will also contribute to the increased security of supply.

Gate terminal is an independent operator. This means that players in the gas market can contract throughput capacity in the terminal. They will do so largely under long-term contracts for substantial volumes of gas each year. Off-takers will be energy companies and also producers that sell their own products.

Gate terminal satisfied all necessary conditions to be eligible for an exemption. In addition, the European Commission concluded that the exemption was justified in view of the project's risk profile and the business model, based on the separation of infrastructure and gas trading.

LNG arrives at the terminal by ship, is stored in tanks, warmed (or regasified) and then delivered to the gas transport network. At this point, its use is identical to that of conventional natural gas.

The LNG terminal will be connected to the national distribution system by an underground pipeline to Gasunie’s station at Maasmond (less than a kilometer away). 

The LNG will be stored in specially designed full containment tanks. A full containment tank consists of a metal inner tank and a concrete outer tank. Thermal insulation between the steel inner tank and the concrete outer tank will limit the evaporation of LNG to about 0.07% of the tank’s content per day.

The gas that is regasified from the LNG will be delivered to the gas transport network and supplied to both domestic and industrial customers in the Netherlands. The proposed LNG terminal on the Maasvlakte will also be an important supply point for the rest of Europe.

Obviously a building project as Gate terminal has a positive effect and creates jobs, especially in the construction phase. During the construction phase of three years on average approximately 400 people worked at the site, up to a maximum of 1200. The terminal itself is not very labor intensive, but is operational seven days a week, 24 hours a day and offers job opportunities for high level technical people. When the LNG terminal is in operation, about 35 people will be employed. 

• • Techint S.p.A. 
  • SENER 
  • ENTREPOSE Contracting 
  • Vinci Construction Grands Projets

Management independence is guaranteed. Gasunie and Vopak together have a large majority interest in Gate and will make the greater part of the investments. The minority shareholders have a financial investment and can make interesting technical contributions. In the long run, though, it is just a financial investment. The minority shareholders will have no say in the terminal's commercial policy nor will they have a say in the access for other customers.

The LNG carriers will be berthed at Gate terminal in a separate canal. This ‘Kleine beer-canal’ will not be accessible to heavier and larger vessels. A small island is created as a natural barrier between Gate terminal and the unloading route. Vessels with a deep draught will be grounded because the harbour will be just 14 metres deep. The carriers will be guided by highly trained pilots and tugs. The Port of Rotterdam Authority accordingly thinks the risk of collision is acceptably low. The pipes that carry the LNG to the tanks will be permanently cooled. Once a carrier is safely moored, communications will open between ship and shore. When the all-clear is given, the unloading arms will be connected. A checklist will be run through and then the arms will be cooled so that the LNG can be discharged. Should anything unexpected happen, a significant number of security measures have been built in, such as automatic stops on the pumps and valves, and the arms are programmed to break loose and dry (without releasing any LNG) if they are in danger of being overextended. Detailed checks are made in advance, this is a worldwide standard procedure for all LNG terminals.

The environmental impact assessment calculated the distance at which the impact of a collision would still be perceptible in various weather conditions. In the most unfavourable situation, in which the gas cloud does not immediately ignite, an incident near the Beer channel or in the Yangtze harbour would have an impact distance of nearly 1,500 metres. Depending on the wind direction, that is the distance at which the concentration of gas in the air would become lower than the ignition point. Moreover, any gas cloud would rise because the gas is lighter than air. The downwind risk is therefore virtually zero.

For an LNG terminal with a capacity of 8 – 16 billion m3 there would be between three and four ship movements a week on average and about 180 a year.

The location of the LNG basin has been planned so that the carriers can carry out short and simple maneuvers that maximize safety and minimize disruptions for other ships.

Safety will come first in every phase of every process at the LNG terminal. Safety can be guaranteed because the LNG industry began to develop standard codes, equipment and designs back in the early 1970s and has earned an excellent safety reputation over the years. Gate terminal recognizes the overriding importance of the environment and safety. Both partners conduct strict policies on the environment, health and safety. The terminal’s policy will aim at “no harmful emissions”. Throughout the world, natural gas and LNG are seen as an energy source with a favorable environmental impact. The safety track record of these products is also impressive.

Gasunie has 30 years’ experience managing and operating an LNG peak shaving plant at the Mississippi dock on the Maasvlakte. A 12-hectare site houses a plant for liquefying natural gas, two LNG storage tanks, a liquid nitrogen storage tank, high pressure pumps and vaporisers. This peak shaver has a maximum capacity of 1.3 million m3 of natural gas per hour. Apart from during periods of peak demand in extremely cold winters, the plant can offer additional support if there are disruptions or failures at a gas producer.

From the moment the LNG is regasified, the environmental impact is identical to that of natural gas (e.g. fewer CO2 emissions on combustion in comparison with coal). The energy needed for the regasification process can be produced by using some of the gas itself. If there is direct environmental exposure, for example through leakage, LNG causes less damage than an oil spill since it will immediately regasify.

Gasunie operates an LNG peak shaving facility in the port of Rotterdam for 30 years and is therefore familiar with the LNG product. Vopak offers storage facilities for various products, including products under low temperatures or to save under pressure. Knowledge of LNG and storage of products is therefore present by combining Vopak / Gasunie.

Neither Vopak nor Gasunie will have a commercial interest in the trade in or sale of LNG or natural gas. As independent companies they will offer their services to anyone wishing to use them. Gate terminal will give all customers a fair chance to use the independent LNG import terminal by means of an open season procedure.

Gasunie was split up on 1 July 2005 into a trading company (Gasunie Trade & Supply) and an infrastructure and transport company (N.V. Nederlandse Gasunie). The latter is participating in Gate terminal with the specific aim of exploiting the growing international gas flows. N.V. Nederlandse Gasunie’s tasks include managing and developing the national gas transport network and transporting gas.

Gas Transport Services B.V. (GTS) is a wholly-owned subsidiary of N.V. Nederlandse Gasunie but operates as an autonomous company as required by law. GTS is responsible for the commercial management, operation and development of the national transport network. It ensures there is sufficient capacity, is responsible for balancing the network and for connections to other networks.

Vopak is the world’s largest independent tank terminal operator and is specialised in the storage and distribution of liquid and gaseous chemical and oil products. It has a wealth of experience developing and managing independent terminals, handling cargoes carried by tanker and efficiently managing stocks for a variety of customers. One of the goals Vopak has set itself is to expand its core activities in the storage and handling of LNG. For further information, go to www.vopak.com.

Gasunie was incorporated in 1963 and has more than 40 years’ experience in the transport of natural gas, gas quality control and efficient supply to the national gas transport network. The network plays an important role in the distribution of natural gas flows to other countries in Europe. Gasunie has operated an LNG peak shaver on the Maasvlakte for 30 years, producing LNG from natural gas and vice versa. During peak periods of extreme cold this plant guarantees the security of supplies in the west of the Netherlands by injecting natural gas into the national network. Gasunie was split up on 1 July 2005 into a trading company (Gasunie Trade & Supply) and an infrastructure and transport company. The latter is participating in the joint venture with Vopak. For further information, go to www.gasunie.nl.

The LNG terminal will be connected to the national distribution system by means of an underground pipeline to Gasunie’s station at Maasmond (less than a kilometre away). For further information, see appendix 3 to the notification of intent for the environmental impact assessment.

Rotterdam is an excellent location for an LNG import terminal. It provides the best access for LNG carriers (also for the latest generation of large vessels – Q-flex and Q-max) and all necessary support and handling facilities are available, such as pilots, tugs and shipping management. There is a huge market for natural gas in the region and industrial complexes in the direct vicinity provide opportunities for synergy (for example through the use of residual heat). Moreover, the connection to the existing gas transport grid is less than 2 km.