Terminal newcomer in last lap at Huelva
EIS approvedas Villar Mir sifts offers forcapacity deals
Spanish conglomerate Grupo Villar Mir has bagged a key permit for its Energas LNG import project planned for the country's south-west as it mulls a groundswell of capacity interest.
The Environment Ministry's climate change division has approved the environmental impact statement for the proposed terminal, which aims to become the second at the Atlantic port of Huelva.
The permit is the last major hurdle ahead of a decision by the Industry Ministry, which has final say on gas infrastructure projects in the country.A company source said Spanish regulatory process now gives the ministry a month after the EIS approval to make its call.The environmental permit comes as Villar Mir tests the market for capacity at the terminal, which is targeting the Spanish and Portuguese gas markets.
The company's Villar Mir Energia subsidiary has been seeking expressions of interest in medium or long-term spare capacity at the site.The source declined to detail the result of the open season's non-binding phase but he said the EoI which were due in this week, exceeded the capacity on offer.The Energas terminal presents a new test for Spanish authorities, as Villar Mir plans for the facility to be the country's first that is exempt from third-party access rules in force across Europe.
The EIS process was not without hiccups. An environmental group dedicated to protecting the Huelva river estuary and a foundation tied to La Rioja University filed complaints about the project's potential environmental impact, arguing that its effect on water temperatures in the estuary has not been sufficiently evaluated. Environmental authorities ultimately demanded that Villar Mir meet a number of conditions, including mitigation measures during construction and emissions limits during operation. The Environment Ministry also said the vaporisers may not alter water temperatures by more than 3 degrees.
Located in the Andalucia region, Energas LNG will have an initial send-out capacity of nearly 4 billion cubic metres per annum and will be linked to a proposed 900-megawatt power plant.The facility will be sited at Palos de la Frontera, not far from the Huelva LNG terminal run by Enagas, Spain's largest LNG terminal operator.
Villar Mir plans at first to build two 150,000 cubic-metre, full-containment storage tanks and marine infrastructure for vessels of up to 210,000-cbm.It also will be expandable to 6 Bcma in send-out capacity, with a third storage tank and a jetty for 245,000-cbm ships contemplated in the design.Construction is scheduled to begin next year with start-up slated for 2015.
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