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.