President Nicolas Sarkozy said on Tuesday that a promised liquefied natural gas terminal in northern France would be built despite delays that had cast doubt on the project, Reuters reports.
"I had promised in Dunkirk that we would make a major investment so today I'll take the opportunity to confirm the development of the LNG terminal," Sarkozy said during a visit to the Gravelines nuclear power plant.
EDF (EDF.PA), which runs all of France's nuclear power plants, confirmed the investment amounted to more than 1.5 billion euros ($2.22 billion). EDF is 84.5-percent state-owned.
The investment decision originally had been expected by the end of 2010. Last June, former Industry Minister Christian Estrosi said EDF and partner Total were aiming to start production on the site by 2014.
Total, France's biggest company by market value, signed an agreement with EDF to invest in the Dunkirk project after closing a low-margin refinery in the region, causing public and political uproar.
Total Chief Executive Christophe de Margerie, who accompanied Sarkozy and EDF CEO Henri Proglio on the Gravelines visit, confirmed his group would hold a 10 percent stake.
The LNG terminal in Dunkirk, with a regasification capacity between 10 billion and 13 billion cubic meters per year, would meet 20 percent of France's natural gas demand and employ 1,200 people during construction and 50 when in operation.
But the project comes at a time when a boom in U.S. shale gas production and a mushrooming of LNG projects around the world have led to a global glut, just as weak economic growth has capped demand, pushing gas prices sharply lower.
"I had promised in Dunkirk that we would make a major investment so today I'll take the opportunity to confirm the development of the LNG terminal," Sarkozy said during a visit to the Gravelines nuclear power plant.
EDF (EDF.PA), which runs all of France's nuclear power plants, confirmed the investment amounted to more than 1.5 billion euros ($2.22 billion). EDF is 84.5-percent state-owned.
The investment decision originally had been expected by the end of 2010. Last June, former Industry Minister Christian Estrosi said EDF and partner Total were aiming to start production on the site by 2014.
Total, France's biggest company by market value, signed an agreement with EDF to invest in the Dunkirk project after closing a low-margin refinery in the region, causing public and political uproar.
Total Chief Executive Christophe de Margerie, who accompanied Sarkozy and EDF CEO Henri Proglio on the Gravelines visit, confirmed his group would hold a 10 percent stake.
The LNG terminal in Dunkirk, with a regasification capacity between 10 billion and 13 billion cubic meters per year, would meet 20 percent of France's natural gas demand and employ 1,200 people during construction and 50 when in operation.
But the project comes at a time when a boom in U.S. shale gas production and a mushrooming of LNG projects around the world have led to a global glut, just as weak economic growth has capped demand, pushing gas prices sharply lower.