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Project to boost LNG as fuel receives funding from European Commission

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LNG Industry,

Enagás has announced that the ‘LNGHIVE2: Infrastructure and Logistics Solutions’ project has been selected by the European Commission ‘Connecting Europe Facility’ (CEF) for funding.

According to the statement, the initiative plans to increase the use of LNG as a fuel for maritime and rail transport. The total investment in the project will reportedly be approximately €14 million, of which nearly €3 million will be financed by European funds.

The project is coordinated by Enagás and promoted by the Spanish Ports Authority. Six other partners are taking part in the project: the Port Authority of Huelva; RENFE Mercancías; ADIF; Saggas; Marflet Marine; and the Valenciaport Foundation.

The initiative is scheduled to run until 2022, and includes adapting regasification terminals in Huelva and Sagunto (Valencia) to offer LNG as fuel. It also foresees that LNG will be introduced in a ‘maritime-rail green corridor’ between the Port of Huelva and the ADIF rail terminal in Majarabique – the dry port of Seville. The project includes building an LNG station in this rail terminal and retrofitting a diesel-hauled locomotive to LNG.

In the statement, Enagás claims that the European Commission has positively rated the quality, as well as the technical and financial maturity, of the project. In addition to this, it has highlighted the initiative’s importance with regards to the Mediterranean Corridor, economic growth, and the Trans-European Network’s (TEN-T) priorities for the use of LNG for multimodal transport and decarbonisation.

LNGHIVE2 is one of the ‘National Action Framework for Alternative Energies in Transport’ measures, which were approved by the Council of Ministers in December 2016. It aims to comply with Directive 2014/94 of the European Commission, which represents a clear commitment to using alternative fuels in the transport sector.

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