General manager LNG market development
Shell Global Solutions
Front End Development Manager
Shell Global Solution B.V.
09:45 - 10:15
Thursday, 19 September 2019
T1.7 Supporting Gibraltar’s move to a lower carbon future
The Government of Gibraltar set the vison of reducing the carbon footprint of its power generation sector while maintaining security of supply at competitive cost and with safety as an absolute must.
Imported LNG stood out to be the fuel of choice, however technical and commercial challenges had to be overcome to turn this vision into reality.
Customer’s initial expectation would have required expensive infrastructures that just didn’t fit into available locations in Gibraltar. With the bustling port, it was also difficult to find safe mooring locations for off-shore/floating solutions.
After careful analysis, Shell identified a suitable site located at recently reclaimed land next to the power plant. The close vicinity to the power plant enabled heat integration between the power plant and the re-gas facility and the existing seafront could be easily modified to become a jetty for small vessels.
Paramount to the overall project were HSSE aspects given the identified site is in a congested port and beneath the flightpath to the Gibraltar airport hence providing height restrictions to the terminal and vessels moored at the jetty. Moreover, the reclamation was not constructed according to the standards required for an Oil & Gas installation, providing challenges for civil engineers and contractors to upgrade the existing site to meet the required seismic standards, all done in parallel with construction of the terminal in a very limited plot.
From a commercial perspective, the smart use of off-the-shelf technical solutions along with Shell’s world class LNG expertise, breakbulk facilities and small scales shipping portfolio enabled the offering of a compelling and cost competitive commercial solution to the customer.
Introducing gas in new markets where there are no existing gas infrastructure or history of using gas as a fuel triggers new challenges for developers, not only to find safe and fit for purpose solutions, but also to be able to communicate clearly the associated benefits of gas and the associated residual risks with the gas infrastructure.
By being in the country and discussing with the local stakeholders Shell, its fully owned subsidiary Gasnor, its partner Chart in cooperation with The Government of Gibraltar was able to design a fit for purpose storage and logistics solutions that met the customers’ expectations for security for supply, safety and costs.