Gate secures financing for LNG break bulk expansion

Gate terminal has signed a financing agreement with the European Investment Bank (EIB) and four other banks, which currently provide financing to the LNG terminal.

This additional financing agreement will support the funding of the expansion of the LNG break bulk infrastructure and services at the Gate terminal in the Port of Rotterdam.

LNG break bulk infrastructure

The investment in this break bulk infrastructure is expected to boost the use of LNG as a cleaner alternative transportation fuel in the Netherlands and northwest Europe. The new infrastructure will be located next to Gate terminal.

The new financial agreement adds a total of €76 million to the existing long term debt financing program for the Gate terminal, worth €750 million.

The agreement

The signing of the financing agreement took place in Rotterdam on 30 October, in the presence of Pim van Ballekom (EIB Vice President for the Netherlands), René Oudejans (Member of the Executive Board and CFO Gasunie), Jack de Kreij (Vice Chairman of the Executive Board and CFO Royal Vopak), Dick Meurs (Managing Director Gate terminal) and Paul Smits (CFO Port of Rotterdam).

The construction of the new break bulk infrastructure is scheduled to start later this year. Commissioning of the facility and commencement of the first services are scheduled for H1 2016. Gate terminal will be expanded with an additional harbour basin, financed by the Port of Rotterdam, that enables LNG distribution for small scale use with a maximum capacity of 280 berthing slots per year.

Comments

René Oudejans and Jack de Kreij jointly commented: “We are proud that the European Investment Bank and a strong international group of reputable banks expanded their long term financing to Gate terminal. With this funding we can, in a disciplined way, step by step further develop Gate terminal. This new break bulk infrastructure will facilitate the usage of LNG as a low emission fuel all over Europe."

Pim van Ballekom added: “Gate terminal is essential for the security of energy supply in Europe. The expanded facility will not only benefit Rotterdam, but also enhance the supply capacity of an important alternative fuel for transportation and industry in Europe. The European Investment Bank is pleased to build on previous support for both Gate Terminal and Maasvlakte and is committed to working with other banks to address Europe’s energy needs.”

The expansion of the financing facility will have a maturity in line with the existing financing which expires at the end of 2029. The EIB will finance €38 million and the syndicate of four banks a maximum of €38 million, supported by an additional guarantee facility.

Adapted from press release by Katie Woodward

Read the article online at: https://www.lngindustry.com/lng-shipping/31102014/gate-terminal-secures-lng-infrastructure-funding-1704/