The European Commission selects LNGHIVE2, coordinated by Spain’s Enagás, to boost LNG as a fuel

LNGHIVE2: Infrastructure and Logistics Solutions’ project, coordinated by Enagás, has been selected by the European Commission ‘Connecting Europe Facility’ (CEF) for funding. The initiative aims to boost the use of liquefied natural gas (LNG) as a fuel for maritime and rail transport. The total investment in the project will be around 14 million euros; European funds will cover around three million euros.

The initiative, coordinated by Enagás and promoted by the Spanish Ports Authority, includes the participation of six other partners: the Port Authority of Huelva, RENFE Mercancías, ADIF, Saggas, Marflet Marine, and the Valenciaport Foundation.

The project is expected to be executed by 2022 and includes adapting the regasification terminals in Huelva and Sagunto (Valencia) in order to offer LNG as a fuel. It also plans to introduce LNG in a “maritime-rail green corridor” between the Port of Huelva and the ADIF rail terminal in Majarabique, the dry port of Seville. The project includes building an LNG station in the rail terminal and converting a diesel locomotive to LNG.

The European Commission has appreciated the quality and technical and financial maturity of this project. It has also highlighted the project’s importance with regards to the Mediterranean Corridor, economic growth, and the Trans-European Transport Network’s (TEN-T) priorities for the use of LNG for multimodal transport and de-carbonization.

Enagás is also currently coordinating CORE LNGas hive, led by the Spanish Ports Authority. With over 50 years experience in developing, maintaining and operating gas infrastructures and eight regasification plants, Enagás is one of the companies with the largest number of LNG terminals worldwide.

The ‘LNGHIVE2: Infrastructure and Logistics Solutions’ initiative is in line with the institutional strategy to deploy LNG supply points in ports, and develop the associated market promoted by the Ministry of Public Works and Transport through the Spanish Ports Authority. Under this strategy, an initiative from Balearia has also been selected. This initiative involves retrofitting five vessels to use LNG as a fuel.

LNGHIVE2 is one of the ‘National Action Framework for Alternative Energies in Transport’ measures approved by the Council of Ministers in December 2016. It aims to comply with Directive 2014/94 of the European Commission, which represents a clear commitment to the use of alternative fuels in the transport sector.

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