London — Elengy and Rubis Terminal have signed a memorandum of understanding to launch preliminary studies for the development of an LNG storage facility at the Reichstett (Bas-Rhin) terminal to supply Central European countries, Elengy said Friday.
The project stems from greater demand to supply LNG to the more gas-isolated central-western European regions and is targeting the retail LNG needs in the industrial and transport sectors.
"This cooperation contributes to accelerating the energy transition of the transport sector by bringing the LNG supply closer to the clients," Elengy said.
The planned storage facility will be able to handle an annual volume of 85,000 mt of LNG. The site is in a strategic location to supply LNG to the more isolated regions including eastern France, Austria, southern Germany and Switzerland.
The satellite storage facility will be supplied from one of Elengy's LNG terminals, Fos Tonkin in the south of France or Montoir-de-Bretagne in the west. The gas will be supplied by rail, and customers will then have their LNG delivered by trucks charged directly on the site.
"The facility will foster the connectivity between retail LNG infrastructures in Europe and contributing significantly to secure LNG supply for the industrial and transport sectors," Elengy said. "Commissioning is scheduled for 2022."
"The cooperation with Rubis Terminal is in line with Elengy's strategy to boost the development of the LNG as alternative fuel by bringing the supply closer to the clients," Elengy CEO Sandra Roche-Vu Quang said.
"The development of LNG projects is part of Rubis Terminal's approach to adapt its services and infrastructure to the changing energy demand", Rubis Terminal CEO Bruno Hayem said.
Greater demand for alternative energy sources has boosted demand to transport LNG by truck, offering supply to industrial sites not connected to the natural gas grid.
Elengy has loaded 20,000 LNG trucks at its three terminals since launching its truck loading service in 2013, a figure set to rise quickly with the recent opening of the new loading slots at the Fos Cavaou terminal.
The development of LNG transportation via truck will allow more natural gas to be supplied to remote customers not connected to the transmission grid, while providing a significant reduction in CO2 emissions, Elengy said.
France's truck loading market started in Montoir-de-Bretagne in July 2013 and Fos Tonkin in June 2014 and has since experienced a rapid rise in loading capacity.
Elengy is subsidiary of GRTgaz within the Engie Group and operates three LNG terminals in France, Montoir-de-Bretagne on the Atlantic coast, as well as Fos Tonkin and Fos Cavaou on the Mediterranean.
Rubis Terminal is a subsidiary of independent French energy group Rubis. It controls and operates 15 storage terminals in France, northern Europe and Turkey.
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