Belgian federal energy regulator CREG has approved the tariff and LNG services agreement proposals for unloading slots and additional storage services at the Zeebrugge LNG terminal.
The approval clears the way for Fluxys LNG to finalize new long-term contracts for the facility up to 2044.
Pascal De Buck , CEO and chairman of the executive board Fluxys Belgium, “Today is a milestone for Fluxys Belgium as we will secure stable return from the Zeebrugge LNG terminal up to 2044. CREG’s approval allows us to turn binding interest from the market into new long-term contracts worth roughly 1 billion euros.”
Laurent Jacquet , Director of the CREG added that tariffs will see a marked decrease for all terminal users who unload and store LNG, and inject natural gas into the transmission system.
The new long-term contracts for unloading at the Zeebrugge LNG terminal expire in 2028. During a subscription window held from April 30 to May 24, 2019, unloading slots and additional storage services at the Zeebrugge LNG terminal were offered over subsequent periods up to 2044.
Fluxys said that the subscription window revealed binding interest from the market for the entire unloading capacity at the facility up to 2044.
Both the regulator and Fluxys Belgium believe the positive outcome of the subscription window process to be the result of a combination of factors.
Gas import needs in Northwest Europe are set to rise significantly: gas production in The Netherlands and the North Sea is declining, while gas demand for power generation will increase to accommodate the phase-out of sizeable coal, lignite and nuclear power generation capacity in the region.
“The subscription window offered an attractive tariff proposition together with optimum destination flexibility throughout Northwest Europe from a strategically positioned LNG terminal: the Zeebrugge facility is directly linked into the Belgian market (ZTP), is fully interconnected with the gas systems of all surrounding markets (TTF, Gaspool, NCG, TRF and NBP) and take-away capacity from the terminal is readily available,” Fluxys said.
As market interest proved positive, the accompanying tariff proposal and LNG services agreement proposal for the requested services were submitted to CREG, who has approved both regulatory documents.
The new tariffs for unloading slots and additional storage will take effect 10 days after notification of the decision of CREG and new long-term contracts will now be concluded from the binding commitments made through the subscription window.