CREG, the Belgian Federal energy Regulator, approved the tariff and LNG Services Agreement proposals for unloading slots and additional storage services at the Zeebrugge LNG terminal; Thus terminal operator Fluxys LNG is able to finalise new long-term contracts for the facility up to 2044.
The long term contracts for unloading at the Zeebrugge LNG terminal expire horizon 2028. The subscription window was open from April 30 to May 24, 2019, where unloading slots and additional storage services at the Zeebrugge LNG terminal were offered over subsequent periods up to 2044.
Now, CREG and Fluxy’s support that the positive results of the subscription window process are the result of the factors below:
- 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.
Pascal De Buck, CEO and Chairman of the Executive Board Fluxys Belgium commented
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.
In addition, Laurent Jacquet, Director of the CREG added that tariffs will experience a decrease for all terminal users who unload and store LNG and inject natural gas into the transmission system. The new tariffs enable CREG establish a solid and stable framework for regulatory supervision in the future.
