A new nitrogen facility under construction in the Netherlands and which is needed for gas processing is facing further delays, according to a Bloomberg report, citing two unnamed sources familiar with the matter.
The late start of the project at Zuidbroek in the north of the country will complicate the handling of natural gas in the Netherlands at a time when gas prices are at record levels due to concerns about Russian gas flows to Europe.
According to the report, natural gas imports from producers such as Norway have to be blended with nitrogen before they can be used by Dutch consumers. Nitrogen is also needed to re-gasify LNG cargoes, which the Netherlands is looking to in order to reduce its dependence on Russian gas.
The start of the nitrogen plant at Zuidbroek has faced repeated delays, with the start of production earmarked for September in a May statement by Dutch state gas company Gasunie Nederlands NV, which commissioned the plant.
The current plan by Gasunie is for one of the three air separation units at Zuidbroek to start operating by the end of October following the completion of tests, according to the Bloomberg report.
But the report also cited the unnamed sources reporting that Air Products & Chemicals Inc., which is leading the project, is not on track to meet that deadline. Air Products & Chemicals had not responded to Bloomberg enquiries as of Aug. 31.
Gasunie told Bloomberg the Netherlands has other nitrogen facilities that could process imported natural gas should there be further delays at Zuidbroek.