Gibraltar has officially opened a new liquefied natural gas (LNG) regasification terminal that was recently completed by Shell and Gasnor, a Shell-owned unit.
As a result, Gibraltar is switching from diesel-fuelled power generation to cleaner-burning natural gas, using a newly commissioned 80-megawatt gas-fired power plant, Shell said on Tuesday.
Construction of the terminal followed an LNG supply agreement signed in 2016 between Shell and the government of Gibraltar. Gasnor operates the regasification terminal.
Natural gas-fired electricity generation has an important role to play in the transition to a lower-carbon global energy system. It can help to reduce greenhouse gas emissions and air pollution by displacing coal- and oil-fired generation.
Shell hopes to replicate the approach taken in Gibraltar in other parts of the world, where there is a need for cleaner, more reliable energy through similar small-scale LNG projects.
LNG will be delivered to the terminal by ship twice a month and at night, minimizing disruption to the neighboring port and airport.
It will be stored in five double-walled stainless-steel tanks, each able to hold 1,000 cubic meters of LNG. The first LNG cargo arrived in January to support testing and commissioning of the power plant.