GIBRALTAR and Shell entered a Memorandum of Understanding (MOU) relating to the possible supply and storage of liquefied natural gas.

The formal take on a gentleman’s agreement will allow Shell to begin a study into the viability of establishing a storage facility on the Detached Mole that would supply a new power station on the North Mole.

Fabian Picardo, the Chief Minister, said: “The prospect of a company of Shell’s international stature and reputation returning to Gibraltar is excellent news.”

The study would run until mid-2015 and depending on its outcome Gibraltar and Shell will consider the future of their relationship.