Gate

GATE TERMINAL

COMPANY PROFILE

2014

+31 181 799 035 | www.gate.nl

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.

PAGE 2

The future is at the GATE TERMINALEditorial: 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.

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 re-

enforce the security of LNG supply

in north western Europe while

providing a continuous supply

of natural gas through the Dutch

transport network.

KEY EUROPEAN HUBBuilt 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

GATE TERMINAL

PAGE 3

© Shell

PAGE 4

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

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

on the world’s largest market,

the USA, collapsed following the

development of indigenous shale

gas.

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.

SECURE AND GREENWith 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.”

© Shell

“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”

GATE TERMINAL

PAGE 5

Port of Ngqura

YOUR REPUTATION IS MINE.

CAN YOUR REPUTATION BECOME OUR RESPONSIBILITY?

At Vinçotte 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 Vinçotte 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

PAGE 6

FUEL FOR THE FUTUREIn 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

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

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

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.

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

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

© Shell

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.

“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.”

THE MOBILE SOLUTIONFifty 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 bio-

LNG - can contribute significantly

to reaching EU’s CO2 emission

reduction targets

GATE TERMINAL

PAGE 7

“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

KWS Infra bvDistrict ZwijndrechtOhmstraat 2-4 3335 LT ZwijndrechtT +31 (0)78 625 08 00 F +31 (0)78 625 08 [email protected]

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.

PAGE 8

© Shell

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

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.

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.

“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.

“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”

Ben Verhagen Head of Business Development Industrial Services

Port of Ngqura

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 construction 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.

“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.

YOUR REPUTATION IS MINE.

“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”

Fob Van Der Bie Manager Division - Pressure Equipment for the

Netherlands

+44 (0) 1603 411555

[email protected]

East Coast Promotions Ltd, 2 Ardney RiseNorwich, NorfolkNR3 3QH

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