The Energy Europe unit of oil company Royal Dutch Shell has signed an agreement with the Port of Marseille authorities to initiate the development of a potential liquid natural gas regasification terminal in Fos-sur-Mer, near Marseille.

Shell said that, in its first phase, the project would have a typical capacity of around eight billion cubic meters of gas per year. The company added that the planned liquid natural gas (LNG) facility will add to Shell’s existing Ionio LNG project, which is currently under development in Sicily.

In addition, the agreement with the Port of Marseille authorities adds to Shell’s recently announced heads of agreement to import LNG via the Gate terminal in Rotterdam, the Netherlands.

Michael O’Callaghan, executive vice president of Shell gas and power in Europe, Russia, and central Asia, commented: Shell is a leading player in both global LNG and European gas supply. With this further agreement, we are following our strategy of creating opportunities to bring additional LNG to Europe and contributing to a diverse energy supply.