Gibraltar signs LNG deal with Shell to combat electricity shortages

The government of Gibraltar has signed a 30-years deal with Shell that includes the construction of a small regasification unit that will receive, store and re-gasify the LNG arriving by ship for use in Gibraltar’s adjacent gas-fired power plant, which is already under construction.

The regasification unit will be run by Shell affiliate Gasnor. The power plant adjacent to the gasification unit will be fitted with five steel storage tanks where the gas will gradually be warned up using heat produced on site.

The small-scale carrier will transfer LNG to the storage tanks through a loading arm that is equipped with an emergency release system, which reduces the risk of spills significantly and increases the security of the operation. The LNG transfer will be performed about twice a month, and at night when port and airport activities are minimal, further increasing the safety.