Dubai LNG Storage Hub Planned

Two Dubai government entities have joined with LNG Impel, a subsidiary of Galveston LNG, to develop an LNG storage hub in Dubai. With a total storage capacity of 40 to 65 bcf, the partners predict that the $1 billion project will offer flexibility to buyers and sellers, allowing them to capitalize on seasonal price variations, and will help develop a global spot market and support derivatives trading. In addition to storage, the facility will provide other services, such as LNG loans and blending. The developers plan to hold a non-binding open season to gauge interest beginning on August 28. Galveston LNG is the parent company of Kitimat LNG, which is developing an LNG terminal in British Columbia, Canada. However, Platts LNG Daily [subscription required] reports that the terminal and the storage hub are currently completely independent projects. LNG Impel’s press release is available here.

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