Liquified natural gas (LNG) is a new – and rapidly growing – business for VTTI.
We’ve announced our intention to partner in developing a brand-new LNG terminal in the Netherlands, and, as joint venture partners, we are making significant investments in major LNG terminals in the United Kingdom and Italy. We are also exploring additional opportunities in LNG around the world.
Facilitating the import and distribution of LNG is part of VTTI’s Strategy 2028 to support the global energy transition, ensure increased availability and enhance security of supply.
As an energy infrastructure company with extensive experience in the storage industry and a healthy balance sheet, we are perfectly placed to build, operate and manage LNG terminals worldwide. We have proven project development and execution capabilities, and we pair this with our operational know-how – for example, in vessel loading and discharge, tank management, and health & safety.
Photo: courtesy of Adriatic LNG
Why is LNG a ‘transitional fuel’?
LNG refers to natural gas cooled to a liquid state, generally for ease of transport and storage. In the journey towards net zero, LNG is considered a ‘transitional fuel’ because it produces significantly less carbon dioxide (CO2) than other fossil fuels such as coal and oil.
While LNG is not a renewable energy, it can play a key role in supporting the green energy transition. For example, if the sun is not shining or the wind is not blowing, LNG can be quickly ‘regasified’ and used to fill gaps in supply from solar and wind power. Including LNG in their energy mix can help countries move away from coal- and oil-fired power stations, which do not have that flexibility, and enable renewables to be integrated into the grid.
As the energy transition progresses, hydrogen is expected to emerge as a significant source of green energy. The infrastructure created for LNG can be reused for new sources such as hydrogen, enabling a smooth and speedy transition to greener energies.
Dragon LNG, United Kingdom
VTTI owns a 50% share of Dragon LNG, a major onshore import terminal near Milford Haven in Wales, consisting of LNG receiving, storage, reliquefication, regasification and send-out facilities.
Photo: courtesy of Dragon LNG
Zeeland Energy Terminal (ZET), the Netherlands
We are exploring the development of an LNG terminal in the Province of Zeeland, near Vlissingen, as a joint venture with Höegh Evi. A Floating Storage and Regasification Unit (FSRU vessel) will be located on the water, where LNG can be temporarily stored and then regasified. This vessel will be permanently moored to a jetty and connected to pipelines to bring the natural gas ashore. A FSRU is a transitional infrastructure solution that can be adapted to import increasing volumes of clean energy over time, such as hydrogen.
Photo: courtesy of Hoegh Evi
Zeeland Energy Terminal (ZET)
