France to Proceed with LNG Project

A liquefied natural gas terminal in northern France will be built despite delays that had cast doubts on the project.

The project led by Electricite de France SA (EDF), is projected to cost $1.5 billion Euros.  Total SA would have a ten percent holding.  EDF said that other European gas companies would “now be invited to confirm their participation.”

The LNG terminal in Dunkirk will have a total re-gasification capacity of between 10 billion and 13 billion cubic metres per annum, meeting a fifth of France's natural gas demand. The terminal could start operations by the end of 2015.

President Nicolas Sarkozy made the announcement on Tuesday. EDF, Europe's biggest power generator, is held as to 84.5% by the state.

France’s three existing LNG terminals at Fos-Tonkin, Montoir-de- Bretagne and Fos-Cavaou, are operated by GDF Suez SA, with Total holding a 28 percent stake. These have a total regasification capacity of about 25 billion cubic meters annually.