Comienzan las obras de expasion de BBG

Después de muchos cambios, retrasos, nuevos accionistas y retirada de muchos de los viejos, al final la terminal de Bilbao comienza su obra de expasión...

BBG breaks through logjam on storage expansion project

Spain's Bahia de Bizkaia Gas has launched construction of a much-delayed storage expansion project.The company, which runs a 7 billion cubic metres per annum LNG import terminal near Bilbao in northern Spain's Basque region, has begun work on a 150,000 cubic-metre tank.

The operator signed a turnkey contract in July with compatriot engineers Cobra, Sener and Balzola for the job, which is expected to cost €110 million ($152 million).The new tank should be in operation by the autumn of 2014, lifting total storage capacity to 450,000 cubic metres.

BBG said the new unit will enhance security of supply to the Basque region while allowing for more gas deliveries into neighbouring markets. It will also enhance vessel size flexibility by permitting more Q-Max and Q-Flex deliveries.

BBG began operations in 2003 and was originally set to expand in 2008. However, it did not receive Industry Ministry approval for the storage boost until April 2010 and a shareholder shake-up led to further delays.The single-terminal operator continues to speak bullishly about further expansion.

BBG's wish list has long included additional vaporisers to boost send-out capacity to 10.5 Bcma but the company has struggled to gain approval from Madrid.The operator now says the Industry Ministry has agreed "in principle" to put the project in the 2012-2020 gas network plan, which is set to be finalised at the end of the year.

Enagas owns 40% of BBG after buying most of Repsol-yPF's former holding in the terminal. Deutsche Bank's RREEF fund and a company owned by the Basque regional government each hold 30% stakes.In the first half of the year the terminal received 23 LNG carriers that offloaded the equivalent of 2.96 million cubic metres of gas. Utilisation stood at 49%.