Storage specialists Royal Vopak has entered into a joint venture with Shell to develop an LNG terminal at Fos-sur-Mer in France.
Vopak LNG Holding B.V. will become the main shareholder with a 90% share in the joint venture Fos Faster LNG Terminal S.A.S., while Société des Pétroles Shell will hold the remaining 10%.
Fos Faster will be developed as part of the expansion stategy of the Grand Port Maritime de Marseille and in close cooperation with the port authority, said Vopak on Thursday.
The joint venture is said to combine Vopak's experience in tank terminal development and operations with Shell's position as the largest equity shareholder of LNG capacity among international oil companies.
The Fos Faster LNG terminal has an initial planned capacity of around 8 billion cubic meters of gas per year, more than 15% of the current annual gas consumption of France. Subject to market demand, permitting and approval processes the terminal could commence operations around the middle of the next decade.
The proposed terminal would further enhance gas supply diversification by providing France and Europe access to new sources of natural gas.
Fos Faster LNG terminal will be positioned as an independent multi-customer terminal. The business model of the terminal will be similar to the Gate terminal currently under construction in Rotterdam.
The Fos Faster project fits Vopak’s ambition to establish a network of LNG terminals providing alternative sourcing opportunities for the European markets, through strategically located terminals connected with the main natural gas grids.
Vopak had just last week reached agreement with a group of investors on their participation in a renewed cumulative financing preference shares program of 110 million euros ($154 million).
Proceeds of the renewed program will be used to finance further expansion projects, according to Vopak.
Vopak also just recently announced plans to build a new fuel storage terminal in Amsterdam.
“The terminal will cater for the growing need for additional storage capacity for oil products in Amsterdam-Rotterdam-Antwerp (ARA) region,” said a Vopak statement in late May.
Vopak is the world’s largest independent tank terminal operator, specialising in the storage and handling of liquid and gaseous chemical and oil products.
It operates 80 terminals in 32 countries and is an important player in the global marine fuel market with storage capacity in the bunker hubs of Rotterdam,Singapore and Fujairah.