Endesa will invest up to €34.5 million in Algeciras port LNG facility

Algeciras, Spain (PortSEurope) November 19, 2020 - Endesa SA, a leading Spanish electric utility company, is planning a €15.6 million investment to increase its liquified natural gas (LNG) bunkering facility at its port terminal in Los Barrios, in the Bay of Algeciras (Cádiz). Following a study and the incorporation of the latest technology on the market, investment rise to about €34.5 million for the adaptation of the facilities before 2023. Endesa has received authorization to extend the term of the concession of the current facility from Autoridad Portuaria de la Bahía de Algeciras (APBA - Port Authority of Algeciras) and the new terminal will reach a storage capacity of around 4,080 m³ and a volume of energy 1,100 GWh managed per year. With this capacity, the Cadiz terminal would become the main LNG bunkering port station in Spain Endesa's General Director of Energy Management, Juan María Moreno, said, “the strategic location of our terminal offers a possibility of growth and diversification towards new lines of business, such as LNG bunkering, which fit in and allow us advance in our decarbonisation strategy by betting on activities that lead to a reduction in emissions”. President of the APBA, Gerardo Landaluce, highlighted the value of this important investment by Endesa in the region as "a commitment to sustainability and alternative energies that will allow the Port of Algeciras to add to the commitment of the sector by reduce the carbon footprint of maritime transport and meet the objectives of the Agenda2030”. The port receives around 30,000 ship calls annually at a time when shippers are under pressure to meet International Maritime Organisation (IMO) regulations to reduce emissions for environmental reasons. The new framework sets the reduction of the percentage of sulfur in fuel oil for maritime transport at 0.5%, so that the propulsion with LNG of ships becomes the best alternative from an environmental point of view, for shipowners, compared to other fuels such as fuel oil or diesel, which were used mostly. Parallel to the LNG bunkering activity, the possibility of new business lines in the terminal is expanded to other sectors. Until now, Endesa used this facility mainly for coal discharge activities, as well as for the storage of fiber optic cable and electrical connection cable. With this expansion and modification, new business lines associated with LNG are opened . In 2019, the company managed a distributed energy volume of 116,611 Gwh, of which 79,784 GWh corresponded to gas sales of 79,784 GWh. In addition, the Los Barrios terminal has sufficient space reserved for a possible expansion in the future depending on the evolution of demand (2 additional docks). The facility will be able to progressively increase its storage capacity , accompanying the growth in demand for LNG bunkering from the initial 4,080 m3 to 10,000 m3 during the decade, and supply, with two additional docks. In addition, the installation of a gas station that also opens the supply of LNG by road is contemplated. The project has already passed the environmental authorization phase and has just received the extension of the concession of the port terminal for another ten years, by the Port Authority of Bahía de Algeciras, for its start-up. The conditioning works, mainly the installation of the tanks and the pipe network, will mean the creation of up to 125 jobs , in the construction phase until the end of 2022. Endesa is the leading electricity company in Spain and the second in Portugal. It is also the second gas operator in the Spanish market. Copyright (C) PortSEurope. All Rights Reserved. 2020.

Endesa will invest up to €34.5 million in Algeciras port LNG facility

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Endesa will invest up to €34.5 million in Algeciras port LNG facility

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