The government of Gibraltar and Shell have signed an agreement for the supply of liquefied natural gas (LNG) for use in a new gas-fired power plant.

This agreement includes the construction of a small regasification unit that will receive, store and re-gasify the LNG arriving by ship for use in Gibraltar’s adjacent gas-fired power plant, which is already under construction.
Energy Business Review reports that the regasification unit will be operated by Gasnor, a 100 per cent Shell-owned subsidiary. The LNG will be stored before being warmed up to its original gaseous state and then piped to the power plant.

The Chief Minister, the Hon Fabian Picardo QC said: “My Government is delighted with this major step forward in the provision of LNG, the best option for an environmentally-friendly and safe solution for guaranteed power generation.”

“This is a massive advance also in respect of guaranteeing the integrity and security of electrical supply for Gibraltar for the next thirty years which is hugely important for our modern tech industries, for all our businesses and for every residential consumer also.”

Following the recent approval of a robust Environmental Impact Assessment report, construction of the regasification unit is planned to start towards the end of 2016 with commissioning and first delivery of LNG expected to take place ahead of the start-up of the power plant, expected during the second half of 2017.