A joint venture between PAO NOVATEK (Novatek) and Fluxys signed a Land Lease Agreement with the Rostock Port for construction of a mid-scale LNG transshipment terminal, with capacity of approximately 300,000 tons per annum, located in the port of Rostock in Germany.
The joint venture (Novatek 49% – Fluxys 51%) will design, construct, finance, own and operate the terminal for receiving and unloading mid-scale LNG carriers, keeping LNG in storage and providing services to enable downstream distribution of LNG: truck loading (and possibly rail carriages) to supply LNG to industry or LNG fueling stations for trucks, reloading to supply LNG amongst other as bunker fuel for ships operating in the Baltic Sea.
The facility will receive LNG carriers from the Cryogas-Vysotsk liquefaction facility that Novatek is currently constructing in the port of Vysotsk located near the Saint-Petersburg area and further LNG deliveries to the consumer market will be made via trucks. Following the signature of the Land Lease agreement, Rostock LNG GmbH is to proceed with the engineering and permitting processes.
“One of our LNG strategic initiatives is to develop small- to medium-tonnage projects to target niche markets and customer segments,” said Leonid Mikhelson, Novatek’s Chairman of the Management Board. “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.”
Pascal De Buck, Managing Director of Fluxys, added: “Fluxys as gas infrastructure partner is pleased to team up with Novatek in this venture to facilitate the market for LNG as low emission fuel in North and Central Europe and in the Baltic Sea area. Gas and gas infrastructure are key to develop a sustainable, reliable and affordable energy system and 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.”