Russian exploration and production company PAO Novatek and Fluxys Belgium SA said Oct. 17 that they inked a land lease agreement with the Rostock Port for construction of a midscale LNG transshipment terminal at the German port.

The joint venture will design, construct, finance, own and operate the terminal, which is expected to have a capacity of approximately 300 thousand tons per year. The facility will receive LNG carriers from the Cryogas-Vysotsk liquefaction facility that Novatek is currently constructing near Saint Petersburg, Russia. The LNG terminal will also have an option of bunkering and loading of bunkering vessels.

"One of our LNG strategic initiatives is to develop small- to medium-tonnage projects to target niche markets and customer segments," Novatek Chairman of the Management Board Leonid Mikhelson said. "This approach allows us to build effective marketing channels in 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."

Fluxys Belgium operates natural gas transmission grid and storage infrastructure in Belgium. Among other things, through the Zeebrugge terminal, it sells capacity for loading and unloading LNG carriers, storing LNG and regasifying it for transmission in the grid.