Gate

COMPANY PROFILE

2014

GATE TERMINAL

+31 181 799 035 | www.gate.nl

The future is at the GATE TERMINAL Editorial: Colin Chinery

GATE TERMINAL on the Maasvlakte in Rotterdam, was the first import terminal for liquefied natural gas (LNG) in the Netherlands. Now, with its operational capabilities expanded, further developments in sight, and LNG taking an increasing role on energy’s centre stage, GATE TERMINAL is positioned to develop as a major hub for north western Europe.

PAGE 2

Fifty years on from the world’s first commercial shipment of LNG, the threat of Russian restrictions on gas flow through the Ukraine has pushed energy security to the top of the European agenda.

Europe imports 40 per cent of its gas from Russia - 60 per cent through Ukrainian pipelines – and the EU executive is looking at new and alternative sources such as the Caspian Sea and Mediterranean.

A front leg in this stand-apart strategy is to step up imports of liquefied natural gas - gas that is cooled into liquid form at 160 degrees Centigrade, reducing it to one-six-hundredth of its original size. Transported by tanker to specialised handling locations it is converted back into a gaseous form for delivery to users.

GATE TERMINAL As a partial deliverance from major source dependency, the EU move would be a long-term tactic.

But along with other developments in the LNG market, the potential for GATE TERMINAL, the first – and currently underused - LNG import terminal is encouraging.

Opened in late 2011, GATE TERMINAL– ‘Gas Access To Europe’ – adjoining the Port of Rotterdam, combines the receiving and unloading of LNG carriers at its two jetties with gas storage in three large containment tanks.

In place is a supporting network of circulation pipelines and a

process area where the LNG is regasified (cooled) and broken down into smaller quantities for further distribution.

Location and function means that GATE TERMINAL is able to reenforce the security of LNG supply in north western Europe while providing a continuous supply of natural gas through the Dutch transport network.

KEY EUROPEAN HUB Built by the state-owned gas infrastructure company Gasunie and Netherlands-based liquid bulk tank storage company Vopak,

the GATE TERMINAL was seen by the Dutch government as part of its strategy to hold on to the Netherlands position as a key European gas hub.

While Europe has abundant capacity for LNG imports, particularly in Spain, pipeline bottlenecks in the Pyrenees could make it difficult to move gas from Spanish ports to central Europe.

The Rotterdam facility would not face that problem. GATE TERMINAL can regasify and pump out 12 billion cubic metres a year and Gasunie says its network is capable of moving all of the

© Shell PAGE 3

terminal’s production into Germany (much of GATE TERMINAL’s gas already flows south and east as far as Austria and Hungary).

“In principle the GATE TERMINAL was developed as an additional access point for entry into the European gas grid, a regasification terminal only.

Security of supply was a very important issue then as now,” says GATE TERMINAL Managing Director Dick Meurs.

“Another factor was the diversification of gas sources into the system, a key element for customers since it enables them to have more options available.”

Timing is a capricious enterprise partner however. Six month before GATE TERMINAL came on stream, a tsunami triggered by an earthquake off the coast of Japan took the lives of tens of thousands and causing a catastrophic failure at the Fukushima 2 nuclear power plant.

Three of its six reactors melted down in the biggest nuclear disaster since Chernobyl in 1986, leaving the world’s third largest economy reliant on LNG to fill its energy gap.

Since then plans to phase out nuclear power in the next few decades have made the role and importance of LNG increasingly important in Japan’s energy strategy. ”Fukushima changed the global energy market a lot,” says Mr Meurs. “With Japan buying into LNG, LNG prices went up significantly, and for Europe in

on the world’s largest market, the USA, collapsed following the development of indigenous shale gas.

general this brought a change in the market dynamics.”

For GATE TERMINAL and other European terminals it has meant a high level of unutilised capacity. But now the dynamics are changing again. Gas prices

SECURE AND GREEN

PAGE 4

“In principle the GATE TERMINAL was developed as an additional access point for entry into the European gas grid, a regasification terminal only.

Security of supply was a very important issue then as now”

And last month global prices for LNG dropped to their lowest level since the post Fukushima nuclear crisis – 40 percent down on 12 months - as low summer demand in the northern hemisphere was met by rising Asian output.

With European facilities operating at one third capacity, governments are looking at increasing LNG imports to buttress supply security as changing conditions are making LNG competitive as well as

environmentally more attractive.

GATE TERMINAL developed originally as a shipping-focussed import terminal. But since last year it has also been an export terminal, with new facilities for small vessel berthing and reloading LNG in support of small scale market and global trading developments.

Now with the commissioning of a truck loading station, GATE TERMINAL can not only send gas through the Dutch pipeline network, but also transport LNG as clean alternative to traditional fuel for both shipping and road transport.

“The growing market for LNG as a fuel for maritime uses and heavy duty road transport is one that has developed since GATE TERMINAL opened and becoming more and more significant,” says Mr Meurs.

“Last year we adapted the terminal to enable our customers to load ships and also accept small coastal tankers that distribute LNG to the Baltic and Scandinavian area.

“And since the beginning of this year we have been operating our truck loading station enabling our customers to distribute LNG into north western Europe by road.

“This puts the GATE TERMINAL more into the position of a genuine LNG hub, not only delivering gas into the grid but also distributing smaller parcels of LNG to other parts of Europe and larger ones to other parts of the world.

“Now we must see to what extent the market will grow - and how fast - to support further investment.

We still have our core group of five major European energy suppliers - Dong Energy, EconGas, RWE Supply and Trading, Eneco and E.On Ruhrgas – and we are now developing additional customers, especially on the trucking side.”

GATE TERMINAL

YOUR REPUTATION IS MINE.

CAN YOUR REPUTATION BECOME OUR RESPONSIBILITY?

At Vinรงotte we want to help guarantee the reputation of our industrial and regular clients when it comes to quality, safety and the environment.

As independent and impartial service provider we offer inspections, testing, certification and training in these fields. With more than 140 years of expertise we offer more than 130 services (electricity, hoisting apparatus, pressure equipment, civil engineering, safety in the work place, environmental protection and radiant protection) in a variety of sectors.

The Vinรงotte group has an annual turnover of 201 million euros and 17 offices worldwide. Our headquarters are situated in Vilvoorde, Belgium.

Take a look at our services on

www.vincotte.com

Port of Ngqura

PAGE 5

FUEL FOR THE FUTURE In January Primagaz Benelux loaded the first trailer of LNG at GATE TERMINAL. Logistics partner Primagaz provides propane to more than 30,000 private clients and businesses across the Benelux region – and the deal is

with a combined storage capacity of more than 31million cubic meters in 29 countries - in Britain, the deep sea ports of London, Teesside, Windmill, Barry in South Wales, and Thames Oilport.

The majority of Vopak customers are companies

With an annual gas throughput of 127 billion cubic meters, Gasunie’s network ranks among the largest high pressure gas pipeline grids in Europe, with more than 15,000 kilometres of pipeline in the Netherlands and northern Germany, dozens of installations

seen as another milestone in the development of small scale LNG, confirming its appeal as the fuel for the future.

Vopak is the world’s largest independent tank storage service provider, operates 79 terminals

operating in the chemical and oil industries. Japan and South Korea are the world’s top two LNG buyers, together with India and other Asian gas importers, taking some 70 percent of global exports of the super-cooled fuel.

and 1,300 gas receiving stations.

“GATE TERMINAL is an independent entity with a shareholding structure, but we share best practices and have some interchanges with personnel and training,” says Mr

PAGE 6

GATE TERMINAL Meurs, a former director of Vopak Venezuela, with an extensive global experience in managing companies in shipping, logistics and terminal operations.

Before joining Vopak in 2008 he was director Maersk Logistics South America, and has held senior management positions at P&O Nedlloyd in South America, Asia and Europe. “My background is in civil engineering, but my interest has always been in maritime activities such as logistics, transport and terminals.

THE MOBILE SOLUTION Fifty years after the first shipment left the Arzew plant, Algeria for Canvey Island in the Thames Estuary, Dick Meurs is confident about LNG’s and GATE TERMINAL’s unfolding development.

“The beauty of LNG lies in its mobility. Normally with gas you have to go through a pipeline, and this imposes restrictions on distance. But LNG is a very flexible commodity. It can change owners several times and it can move anywhere.”

There is enough gas for the next 200 to 250 years. Increasing

the share of renewable sources for producing energy, such as wind turbines or solar power, will take time, with more technology required to make them cheaper.

Natural gas - also in its liquid form as LNG - has an important role to play to enable this transition process and to keep the energy supply of Europe stable, reliable and affordable while renewables are increasing their share in the energy mix. In the coming decades natural gas - and in time also green gas and bioLNG - can contribute significantly to reaching EU’s CO2 emission reduction targets

“Last year we adapted the terminal to enable our customers to load ships and also accept small coastal tankers that distribute LNG to the Baltic and Scandinavian area” KWS Infra: The connecting factor “Vopak very much specialises in the storage of liquid products – aside from GATE TERMINAL it also co-owns and operates a LNG terminal in Mexico - while Gasunie has a broad expertise in infrastructure and logistic.

Each partner shares the other’s experience in technical fields.”

KWS Infra is one of the 120 operating companies of Volker Wessels. A full service contractor for all imaginable disciplines. We can help you with a integrated advise, design, construct and maintenance of your conceptual design. At Gate Terminal we integrated design and construct of Ground work, Civil work, Road work, Mechanical piping, Construction work and Maritime activities.

KWS Infra bv District Zwijndrecht Ohmstraat 2-4 3335 LT Zwijndrecht T +31 (0)78 625 08 00 F +31 (0)78 625 08 10 zwijndrecht@kws.nl www.kws.nl

PAGE 7

“Making your reputation our responsibility” Vinçotte is one of the world’s leading TIC companies and its work at the GATE terminal off the coast of Rotterdam is a demonstration of exactly how the business can look after your reputation while also providing an unrivalled portfolio of TIC services.

International testing, inspection and certification (TIC) company, Vinçotte, provides more than 130 specialised services and has more than 140 years of experience (Since 1872). Ensuring your projects are safe, of high quality and legally compliant with both regional and international laws, the Belgian company is the perfect partner for all of your TIC needs.

Vinçotte was a major player during the development of the GATE terminal and Head of Business Development - Industrial Services, Ben Verhagen says that the company’s work in Rotterdam is on-going.

“We were involved in the complete project from beginning to end and even today, now that the terminal is operational, we are still involved making sure that everything is running safely.

“We were involved in the complete scope concerning quality, inspection and testing,” he says.

“We were involved in advising the Dutch government on which rules and regulations are in place in Europe and internationally, we were also involved in all of the pipes and plates as a third party inspector, confirming standards.”

One of the elements that set Vinçotte apart in the TIC industry besides its reputation as trusty service provider is its portfolio of service offerings. The company is capable of offering a full range of TIC

Ben Verhagen Head of Business Development

Industrial 8 Services PAGE

services, creating a single point of contact for the client and ensuring round the clock safety and reliability.

“Another one of our strengths is that we have all services in-house so we can help people from start to finish. Other companies specialise in one area, for example certification or inspection, but they will maybe not offer NDT (Non Destructive Testing). So clients can choose other companies for very specific tasks or they can come to us who is offering the full package and a single point of contact, saving a lot of time and trouble,” says Verhagen.

“We were involved in the complete project from beginning to end and even today, now that the terminal is operational, we are still involved making sure that everything is running safely”

As for NDT, Vinçotte remains an industry leader offering a range of ‘standard’ and ‘advanced’ testing techniques.

“At GATE, our team undertook all of the conventional NDT but one of our strengths, why we work on LNG terminals internationally, is our advanced ultrasonic testing.

“For example Automatic ultrasonic inspections can replace radiography on the inspection of 9% nickel storage tanks and with our system we can prove to everybody that we can detect all indications in the welds, from the smallest inclusions to cracks, and what’s more, there is no radioactivity used so all workers including welders, constructors and scaffolders can continue working during

inspection, saving a lot of time for the end user,” explains Verhagen.

Evidence of the quality standards kept by Vinçotte is the GATE terminal itself where “everything has gone very smoothly but the reason we do these tests is because no one is perfect. There will always be a chance of a welding error or something which has to be adapted.

“GATE wanted to have a safe, quality operating plant which can be used for many years to come so they see us as a partner and someone who can help them improve their quality and to prove that they deliver top quality.

“In the end, when the project is finished, they received a certificate from us to confirm that everything is controlled and 100% conform the requirements of the code and specifications. They are proud to show this to new clients so our output is considered as an asset,” says Verhagen.

In the future, the energy industry and the LNG sector in particular is offering many opportunities for Vinçotte and its Industrial Services division. “We have around 2500 people internationally of which 400-500 people are active with NDT,” says Verhagen. “The LNG market is very important for us, we are also very active in other markets such as the nuclear, pipeline, construction and other markets.

Today Vinçotte is also working on the ITER project in France which is a nuclear fusion project and one of the most important in the world.

“We have been internationally active in the LNG market for many decades (e.g.

Belgium, Canada, France) and since GATE, we’ve worked on LNG projects in Algeria and Poland and we are looking at a major project in Australia,” and with Vinçotte’s superior NDT capabilities, all of these projects can be sure that their reputations will be upheld and include safety and reliability at the core of all operations.

YOUR REPUTATION IS MINE. Safety is of paramount importance when setting about a project like that which saw the GATE terminal emerge on Maasvlakte in Rotterdam.

With pressurised storage and transport of materials making up the lifeblood of the facility, it is vitally important that the infrastructure was, and continues to be, in line with both regional and international legal requirements. This is where the NDT and the Pressure Equipment divisions of Vinçotte come into their own.

“At the time, according to European and national legislation, the Pressure Equipment Directive (PED) was applicable so we had to act as a Notified Body of the PED on all the pressure equipment of the terminal; all of the piping, some pressure vessels and vaporizers,” explains Fop van der Bie, Manager Division - Pressure Equipment for the Netherlands.

“Then, of course, you have the LNG storage tanks which have different regulations but a requirement to have third party inspections.

“This is one of the bigger projects that we as Vinçotte Netherlands have worked on. It was the first real LNG terminal in the Netherlands; it was very interesting and very professional. We started there in 2009 and the project ended on schedule in 2011,” he says.

However, where needed, Vinçotte provides ongoing support on all of its projects and the law requires that a facility like GATE terminal is inspected on a periodical basis.

“All of the items which require a Putting Into Service inspection by Dutch law, also require periodic inspections during the in service period. From day one, we have continued our involvement as planned,” explains van der Bie. “The people there have changed of course, some that were there during Port ofconstruction Ngqura remained for some time but one by one they have all

disappeared to other projects around the world and now it’s the experts who will run the daily operations of the plant.”

The laws that govern the energy industry are strict and navigating them to ensure absolute compliance is something with which Vinçotte is more than happy to help. Van der Bie says that one of his division’s core strengths is being able to educate clients on best practice.

“Sometimes our clients are right on the edge of what is possible and that requires an understanding of the law in order to make sensible choices” “Many of our clients are big companies, they want the best, and they require the best. Otherwise they won’t be big for so long. Our strategy is to know exactly what is required from national and international law; we are involved when the laws are made for tomorrow or for the coming years and we can advise on the best course of action. Sometimes our clients are right on the edge of what is possible and that requires an understanding of the law in order to make sensible choices,” he says.

Another strength lies in the company’s flexible approach to work. Weekends, late nights, remote locations; nothing stops the workforce getting important TIC jobs done.

“We are very flexible in our approach.

Our people are very flexible and we can react quickly. When plans change and inspections change, you have to be equipped to deal with it. We think with client, educate the client and plan for the future,” says van der Bie.

He adds: “We operate internationally. If our clients in the Netherlands, existing or new, have a project abroad we will follow them and this results in high quality.”

Much like the NDT division, van der Bie’s Pressure Equipment division is very active across the entire energy industry and further afield. The Netherlands alone presents many opportunities for Vinçotte to excel, as van der Bie explains.

“We work across the whole scene, not just gas. We work on refineries, chemical plants, power plants, food plants, and all of the plants which require by law inspection of pressure equipment.

“There are around 10,000 storage tanks in the Netherlands which require some sort of legal inspection and there is a lot of distribution and transporting going on from the harbours so there are many facilities that present hazards and hence, legislation. This is going to increase in the coming years and we are changing legislation right now.

“Transport lines are excluded from the PED, but there is a lot of legislation surrounding them; high pressure gas lines, oil lines - any lines with fluids require some sort of inspection and certification.”

With 16 locations around the world and experience operating across a range of industries, Vinçotte is definitely a leader in the TIC industry and set to make your reputation its responsibility.

Fob Van Der Bie Manager Division - Pressure Equipment for the Netherlands

+44 (0) 1603 411555 info@totalworldenergy.com East Coast Promotions Ltd, 2 Ardney Rise Norwich, Norfolk NR3 3QH

www.totalworldenergy.net