Import demand will increase as a result of reduction in gas production in Groningen

LNG can be supplied by ship from anywhere in the world, increasing the diversity in gas supply

Gas infrastructure company Gasunie and Groningen Seaports are to research the possibilities of creating infrastructures in the Eemshaven Harbour in the north of Groningen for the supply of LNG by ship, including the unloading and gaseous injection in the gas transport network. The parties have signed an agreement to that effect. With an LNG facility in the Eemshaven Harbour, the possibilities to import natural gas will expand, as the supply of gas from the Groningen-field is further reduced. In collaboration with market parties, Gasunie will survey which technical, logistical and commercial concepts would be suitable. Groningen Seaports will survey location related matters in the Eemshaven Harbour.

LNG can be supplied by ship from anywhere in the world, for example the Middle East, various parts of Africa, Norway, the United States and Australia. The Netherlands have an LNG facility already, at the Rotterdam Gate Terminal. Additional initiatives such as in the Eemshaven Harbour would result in a larger diversity in sources and supply routes for energy supply in North-West Europe. This is important in the light of the production issues in Groningen and demand and supply developments in Europe.

Strategic location Eemshaven Harbour – Groningen Seaports

Groningen is not only a gas production area, it is also the province where large quantities of gas enter the country from Norway, Germany and Russia via international pipelines. Using nitrogen, high-calorific gas from other countries and other production regions in the Netherlands can be made suitable for use by Dutch households, which configured to the use of low-calorific gas from Groningen. Nitrogen is already being added, and an extra production capacity is being planned. This makes LNG also suitable as a ‘gas for home use’ in the Netherlands. It can help make up for the shortfall as a result of the reduced gas supply from the Groningen field.

In the vicinity of the Eemshaven Harbour, sufficient gas transport capacity is available for the national and international transport of natural gas. This makes the Eemshaven Harbour a very suitable location for the supply of LNG. Because of the good connection to the Gasunie gas transport system in the north of the country, the Eemshaven Harbour can help expand the LNG supply to the Netherlands and the north-west of Europe in an efficient way. In this respect it can complement the existing Rotterdam Gate Terminal of Gasunie and Vopak. The Eemshaven Harbour is extremely suitable for LNG activities. It provides sufficient space and the ports harbour basins are excellently connected to to the open sea.

The LNG market is growing

As opposed to gas supplied by pipeline, LNG is traded on a global market. More and more LNG is becoming available, as new production facilities will be put into service in the coming years, in e.g. the United States, Australia and Qatar. It is expected that this will lead to lower prices for LNG, which means LNG will increasingly be able to compete with natural gas transported by pipelines. This effect is already apparent in Europe. In addition, the European Commission wants to promote LNG in Europe. Not only as a cleaner fuel for transport by road and water, but also because they feel LNG is important for Europe’s energy independence. By increasing the number of options, the buying power of energy users is strengthened.

For this reason, market parties in Europe feel that LNG has an interesting future. Gasunie always bases the development of infrastructure on the needs of the market and can thus ensure a solid investment base. Market research is an important part of the feasibility study.