Details on open season

07-03-2019

Introduction
Gate terminal owns and operates an LNG terminal in Rotterdam, the Netherlands, with a send-out capacity of 12 billion cubic meters per annum (BCM/a). Information on Gate terminal can be found on the website www.gateterminal.com
Gate is considering increasing capacity by up to 2 BCM/a by installing additional send-out equipment. This additional capacity can be available from 1 September 2021.
Gate is now inviting parties to indicate their interest through an open season. During this open season, subject amongst other to allocation and FID, parties can book this additional capacity as well as the currently available capacity of 1 BCM/a of the existing terminal for the period from 1 September 2021 to 31 August 2031. The latter will not be offered on a ‘first come/first served’ basis until after the open season.

The product
The 1 BCM/a of available capacity is a bundled product (annual contracted quantity) of berthing slots, storage entitlements and send-out rights. The 2 BCM/a of additional capacity is an unbundled product consisting of additional send-out rights but without additional storage entitlements or berthing slots. The maximum additional capacity that a party can acquire is twice its annual contracted quantity, irrespective of whether such annual contracted quantity is allocated through this open season and/or is the result of previous allocations.

Parties are reminded that securing entry capacity into the Dutch grid from GTS (www.gasunietransportservices.nl) is the party’s own responsibility.

Timeline
Gate is launching the open season procedure today and interested parties have the opportunity to enter into binding contracts with Gate until 19 April 2019.

Procedure
After requesting and signing the confidentiality agreement (for which Gate will provide the draft), if not yet in place, and after Gate receives a bona fide expression of intent (before 5 April 2019, 12.00 local Dutch time, in English, signed by a member of the board of directors), an interested party will have until Friday 19 April, 12.00 (local Dutch time) to sign a binding contract (for which Gate will provide the draft) mentioning amongst others the following input data for the possible later allocation:
• The start date of the capacity contract (between 1 September 2021 and 31 August 2022);
• The end date of the capacity contract (at least 5 years after the start date, but falling not later than 31 August 2031);
• The annual contracted quantity (amendable as per the allocation results), but at least 0.1 BCM/a and not more than 1 BCM/a;
• The additional capacity (amendable as per the allocation results) but not more than the lower of (i) 2 BCM/a and (ii) 200% of annual contracted quantity (as requested through this open season and/or as the result of previous allocations).

Allocation
A) Firstly, the 1 BCM of available capacity will be allocated.

If the total annual contracted capacity requested by all parties is less than or equal to 1 BCM/a, each party will be allocated the requested annual contracted capacity in full.

If the total annual contracted capacity requested by all parties is more than 1 BCM/a, requests will be allocated as follows (until 1 BCM has been allocated, so allocations can be ‘less than full’):
• Firstly, requests with a longer duration will have priority over requests with shorter durations;
• Secondly, for requests with the same duration, an earlier start date will have priority over a later start date;
• Lastly, requests with the same duration and start date will be processed and capacity allocated prorated the capacity requested.

Requests for additional capacity will automatically be adjusted to a maximum of 200% of the annual contracted capacity (including annual contracted capacity as a result of earlier allocations) following the above allocation.

Gate will notify the parties involved on their allocation by Friday 26 April 2019, 12.00 (local Dutch time) by e-mail.

B) Secondly, the 2 BCM of additional capacity will be allocated.

If the total requested additional capacity requested by all parties is less than or equal to 2 BCM/a, each party will be allocated the requested additional capacity in full.

If the total additional capacity requested by all parties is more than 2 BCM/a, requests will be allocated as follows (until 2 BCM has been allocated, so allocations can be ‘less than full’):
• Firstly, requests with a longer duration will have priority over requests with shorter durations;
• Secondly, for requests with the same duration, an earlier start date will have priority over a later start date; and
• Lastly, requests with the same duration and start date will be processed and capacity allocated prorated the capacity requested.

Gate will notify the parties involved on their allocation by Friday 26 April 2019 12.00 (local Dutch time) by e-mail.

It is important to note that this additional capacity will be further subject to Gate taking FID not later than 1 September 2019.

C) Finally any remaining available capacity will be allocated according to ‘first come/first served’ after the open season.

Notices
All written notices will be sent by courier to:

Gate terminal B.V.
f.a.o. Stefaan Adriaens
Maasvlakteweg 991
3199 LZ  Rotterdam
The Netherlands

Any notice will be deemed effective as of the moment of delivery. The request for the confidentiality agreement as well as the expression of interest will also be sent (for information only) by e-mail to openseason2019@gateterminal.com.

Miscellaneous
Each party will bear its own costs associated with the open season.
Gate may change the process as long as no binding contracts are in place.
No rights may be derived from participating in the process.