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Funding for LNG infrastructure in the EU

Funding for LNG infrastructure in the EU

One of the aims of EU infrastructure policy is to transform the current European infrastructure into a unified Trans-European Transport Network (TEN-T) that not only improves connections and strengthens the European economy but can also contribute to achieving climate targets. There is TEN-T funding available for construction of LNG infrastructure, as well as for stakeholder platforms and research projects.

Feasibility studies

At the beginning of 2014 the European Commission announced it will allocate over €1 million from its TEN-T budget to feasibility studies to analyse the potential introduction of LNG infrastructure in Spain and France. The feasibility studies will focus on implementation of bunkering facilities in the Port of Roscoff and Port of Santander.

Realisation of terminals

The Port of Rotterdam and Port of Gothenburg are to receive €34 million  of TEN-T funding to partly cover the construction costs of two LNG terminals. At Rotterdam a new break bulk terminal and truck loading bay will be built to enable supply of both smaller ships and LNG trucks. The Gothenburg terminal will be supplied from the GATE terminal in Rotterdam and will itself supply the Scandinavian LNG market. The project is to be finalised by December 2015.

LNG Masterplan

The LNG Masterplan aims to facilitate development of the required regulatory framework for LNG as fuel and as cargo in inland shipping and contribute to realisation of the necessary infrastructure, including bunker terminals. The project is initiated by Pro Danube Management, and involves the Ports of Antwerp, Switzerland, Mannheim, Rotterdam and Strasbourg as partners. The LNG Masterplan has received a €40 million European subsidy to invest in LNG infrastructure and vessels along the Rhine-Main-Danube corridor. Pilot projects executed under the LNG Masterplan include construction of:

  • bunker terminals at Antwerp and Ruse to create a LNG bunkering network for inland vessels in Northwest Europe

  • bunker vessels, including a combined LNG-MGO tanker (Argos Bunkering BV) and dual-fuel LNG tanker (LNG E-motion)

  • LNG-fuelled vessels, including LNG-fuelled chemical tankers (Chemgas Barging S.a.r.l and DAMEN Shipyards) and pushers

 

For a full overview of pilot projects, click here.

Connecting Europe Facility (CEF)

The EU’s Connecting Europe Facility (CEF) policy aims to realise a core transport network comprising nine major corridors, to be completed by 2030. In the period 2014-2020 the financing for transport infrastructure will triple to €26 billion. The infrastructure package stipulates a need to update the current energy infrastructure and also identifies a need to improve gas infrastructure. As part of the CEF, this package identifies priority gas corridors and projects that can be considered potential projects of public interest and likely to need funding under CEF. LNG terminals are specifically mentioned as likely projects. 

Further reading

Bunkering checklist

IAPH’s WPCI LNG working group has developed harmonized bunkering checklists for LNG operations in ports. Implemented harmonized bunker checklists will be of great benefit to the vessels bunkering LNG in different ports, as this will reduce the potential for confusion caused by having to comply with different rules and regulations in different ports.