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Monday, December 17, 2018

EC Selects Enagás Initiative to Boost LNG

Maritime Activity Reports, Inc.

November 19, 2018

Image: Enagas

Image: Enagas

The ‘LNGHIVE2: Infrastructure and Logistics Solutions’ project, coordinated by Enagás, has been selected by the European Commission ‘Connecting Europe Facility’ (CEF) for funding.

The initiative aims to boost the use of liquefied natural gas (LNG) as a fuel for maritime and rail transport. The total investment in the project will be around EUR14 million, of which close to EUR3 million will be financed by European funds.

The initiative, coordinated by Enagás and promoted by Puertos Del Eastado, features the participation of six other partners: the Port Authority of Huelva, RENFE Mercancías, ADIF, Saggas, Marflet Marine, and the Valenciaport Foundation.

The project is scheduled to run until 2022 and includes adapting the regasification terminals in Huelva and Sagunto (Valencia) to offer LNG as a fuel. It also foresees to introduce LNG in a “maritime-rail green corridor” between the Port of Huelva and the ADIF rail terminal in Majarabique, the dry port of Seville. The project includes building an LNG station in this rail terminal and retrofitting a diesel-hauled locomotive to LNG.

The European Commission has positively rated the quality as well as the technical and financial maturity of this project. Furthermore, it has highlighted the project’s importance with regards to the Mediterranean Corridor, economic growth, and the Trans-European Transport Network’s (TEN-T) priorities for the use of LNG for multimodal transport and decarbonisation.

The use of LNG in transport contributes to improving air quality. It reduces NOx emissions by 85-90%, CO2 emissions by 25% and SOx and particles by almost 100% compared to traditional fuels.

Enagás is also currently coordinating CORE LNGas hive, led by Puertos Del Eastado. With over 50 years experience in developing, maintaining and operating gas infrastructures and eight regasification plants, Enagás is one of the companies with the most LNG terminals worldwide.

The ‘LNGHIVE2: Infrastructure and Logistics Solutions’ initiative is in line with the institutional strategy to deploy LNG supply points in ports, and develop the associated market promoted by the Ministry of Public Works and Transport through Puertos Del Eastado. Under this strategy, an initiative from Balearia has also been selected. This initiative involves retrofitting five vessels to use LNG as a fuel.

LNGHIVE2 is one of the ‘National Action Framework for Alternative Energies in Transport’ measures approved by the Council of Ministers in December 2016. It aims to comply with Directive 2014/94 of the European Commission, which represents a clear commitment to the use of alternative fuels in the transport sector.

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