Fluxys bumps Dunkirk LNG terminal stake as EDF, Total divest

• 03 Jul 2018

Fluxys with consortium partners has agreed to jointly acquire from EDF and Total a 35.76 percent stake in Dunkerque LNG, owner of the liquefied natural gas terminal in Dunkirk.

The Dunkirk LNG terminal, located on a 56-hectare platform at the West Port of Dunkirk, is equipped with: a wharf for the unloading/reloading of the largest LNG tankers (267,000 m3) at a maximum flow of 14,000 m3/h unloading and 4,000 m3/h reloading (modifications are underway to allow the terminal to reach a maximum recharge rate of 8,800 m3/h of LNG) and three  LNG tanks, each with a storage capacity of 200,000 m3 of LNG at -163 °C.

Through the transaction, carried out by Fluxys and its partners AXA Investment Managers – Real Assets, acting on behalf of its clients, and Crédit Agricole Assurances, Dunkirk LNG terminal becomes part of the Fluxys group.

EDF and Total currently between them own 75 percent of the Dunkirk LNG terminal while Fluxys is a 25 percent partner, Fluxys said in a statement.

Besides agreeing to sell a 35.76 percent stake in the facility to Fluxys and its consortium partners, EDF and Total also agreed to sell the remaining 39.24 percent stake to a consortium of Korean investors led by IMP Group.

Upon completion of the transaction, Fluxys and its consortium partners will have a 60.76 percent stake in the facility.

With Fluxys already holding 25 percent in the facility, the company through the consortium will have 30.39 percent in the capital of the terminal while AXA Investment Managers – Real Assets, on behalf of its clients,  and Crédit Agricole Assurances each will hold 15.19 percent.

Closing of the acquisition process is expected in the autumn. Fluxys’ share in Gaz-Opale, the company operating the Dunkirk LNG terminal, stays unchanged at 49 percent, the remaining 51 percent being held by Dunkerque LNG.

Fluxys said in its statement the transaction strengthens its position in the European LNG infrastructure business and the Dunkirk LNG terminal also holds prospects for further growth by developing its small-scale LNG potential, marketing the capacities still available and making the commercial offering evolve with market needs.

Commissioned in January 2017, the Dunkirk LNG terminal is one of continental Europe’s largest LNG terminals. With an annual regasification capacity of 13 billion cubic meters of natural gas,  the terminal can meet 20 percent of France and Belgium’s gas demand.

Through the direct pipeline connection between the terminal and the Belgian network, the terminal provides its clients with easy and flexible access to the UK, Dutch and German markets.

About 75 percent of the terminal’s capacity is contracted with EDF and Total under 20-year contracts until 2036.

The remaining  25 percent of terminal capacity is available for marketing to serve both the Northwest European market as declining production requires additional supply and the growing demand for transshipment capacity.