French LNG firm Elengy said it has signed the first commercial agreements for the Reichstett LNG storage in eastern France, near the border with Germany.
Elengy and Rubis Terminal signed a memorandum of understanding in November 2019 to launch preliminary studies for the development of the LNG storage facility with a capacity of 85,000 tonnes.
US infrastructure investor I Squared Capital and French fuel distributor and storage firm Rubis jointly own Rubis Terminal.
Elengy and the JV said in the initial announcement they had planned to commission the LNG storage in 2022.
In a statement released last week, the operator of three French LNG import terminals revealed the signing of the first commercial deals for the facility.
“These agreements are the result of the ongoing commercialization program initiated last quarter of 2021 and demonstrate the market’s interest for the project,” Elengy said.
According to the company, the partners would load trucks at Rubis Terminal’s site in Reichstett at a “competitive price” and under “optimum conditions of flexibility and security.”
The facility would facilitate access to LNG in eastern France, southern Germany but also neighboring regions isolated from the main LNG supply points, it said.
In addition, the facility will be able to provide a service to collect and stock any bio-LNG produced locally to ensure better delivery to end customers.
Elengy plans to supply the fuel to the storage via rail from its Fos Tonkin and Fos Cavaou LNG terminals on the Mediterranean coast.
Last year, Elengy completed its first loading of an ISO container for rail delivery at the Fos Cavaou terminal near the southern city of Marseille.