3/15/2017 – Thanks to the partnership between our French subsidiary LNGENERATION – retail LNG specialists, and ELECTRABEL – our energy sales subsidiary in Belgium, we have been awarded a contract to supply LNG, to be transported by truck, to Tessenderlo Chimie, in Belgium. The first LNG delivery arrived today.

The contract represents a total gas volume of 40 GWh, and will create a turnover of 1.1 million Euros. The Small Scale LNG solution, proposed by ENGIE and designed to supply the kilns, operated by Tessenderlo Chimie on its Ham site, was rapidly proven a winner over heavy fuel alternatives, thanks to its unique physical and chemical properties (control over, and cleanliness of, the combustion process; the high temperatures reached); the environmental issues (reduction of CO2 emissions by 20% and Nitrogen Oxide levels by 90%); not forgetting its competitive pricing. In the absence of a connection between the industrial site and a natural gas main network, the choice of Liquid Natural Gas was logical.

For Tessenderlo Chimie, this is a structural energy project. This contract, for four of their 28 kilns, is the first step towards a complete conversion of all of the plant’s kilns to natural gas, and later connection to the grid network. Thanks to this Small Scale LNG offer, our Group is, of course, perfectly situated to support the client throughout the rest of their energy transition process.

This contract is just part of our Group’s strategy of developing Small Scale LNG. Having already been identified as a future growth area, Small Scale LNG has a foothold in two markets:

• Used as an alternative energy source: it helps increase the natural gas market, spreading it to those zones isolated from mains distribution networks, allowing us to support industrial clients throughout their energy transition operations.
• Used as a fuel: it allows the Group to position itself as a key partner in clean mobility.

Via its subsidiary, LNGENERATION (150 GWh of LNG sold per year), since 2013, ENGIE has been able to offer Small Scale LNG solutions for those industrial companies isolated from natural gas distribution and transportation networks. This contract is the first step towards the Europe-wide development of our Small Scale LNG offer. And this is only the start: in-depth discussions are currently being held in Italy, via close cooperation between ENGIE Italy & LNGENERATION.