LNG

Centrica plc, the UK owner of the British Gas utility business and a liquefied natural gas importer, has signed a long-term LNG supply agreement with US export plant developer Delfin Midstream Inc.

Jan 2 (LNGJ) - The UK is scheduled to receive its second LNG shipment from Angola in the past week when the “Sonangol Etosha” with 160,500 cubic metres capacity berths on January 2 at the Isle of Grain LNG import terminal on the Medway River southeast of London, according to shipping data. The cargo was lifted on December 19 from the Soyo LNG export plant near the Congo River delta in southwest Africa.

Nov 10 (LNGJ) - National Grid plc, owner of the UK Isle of Grain LNG import terminal on the Medway River in Kent, reiterated the importance of LNG deliveries this winter. It said the scenarios facing the UK’s Gas System Operator are all dependent on flexible sources of imported gas supplies throughout winter, particularly LNG.

   “Gas infrastructure in Great Britain has sufficient capability to meet peak demand this winter, but the outlook underlines the importance of imported gas throughout to meet demand. A potential shortfall in European gas supplies could impact the ability for the UK to import gas should it be required. The GSO has the physical, commercial and market based tools to manage a supply and demand imbalance, including those related to a Gas Supply Emergency, should it be necessary,” said the company in its earnings report.

Flogas Britain, a leading UK supplier of LNG by truck, is also continuing to be a top shipper of liquefied petroleum gas (LPG) and has just been granted planning permission to construct a gas pipeline from Bristol Port in southwest England into the nation’s largest above-ground LPG storage terminal at nearby Avonmouth.

Despite LPG not being as clean a fuel as LNG, the global annual LPG market is still growing on a global basis.

Trade statistics show that LPG’s global market revenue was valued at around $134 billion in 2021 and is forecast to grow and to be worth over $177Bln a year through 2028 with a compound annual growth rate of 4.8 percent.

The largest UK LNG import destination is Milford Haven in Wales and it also imports LPG in smaller vessels than the huge LNG carriers arriving at the South Hook and Dragon terminals.

The next scheduled LPG delivery at Milford Haven is on October 19 on board the 38,950 cubic metres capacity LPG tanker, the “Hourai Maru”, and sourced from the Norwegian refinery at Mongstad, according to shipping data.

Largest in UK

The Flogas Avonmouth Storage facility is the largest of its kind in the UK, with the capacity to store 34,564 tonnes of LPG.

Formerly owned by National Grid Plc, operator of the Grain LNG terminal near London, the Avonmouth facility was previously only able to store LNG. However, work is currently underway to convert it to an LPG facility.

“Running safely underground and out of site, the twin-pipeline will vastly increase the availability of LPG, enabling up to 20,000 tonnes of commodity to be safely and securely discharged from a ship in 24 hours,” explained Flogas.

Flogas said that once complete, the LPG pipeline would link the UK to a diverse, global supply of off-grid gas, providing security of supply and enhancing affordability for off-grid commercial and residential customers.

Flogas, a subsidiary of DCC Plc, said that with the planning permission now in place, the company was talking to potential partners from across the entire supply chain who want to join Flogas in creating a dependable off-grid fuel supply for the UK.

Off-grid role

Flogas notes that LPG was still the cleanest, most efficient conventional off-grid fuel available, and those transitioning from oil will benefit from significant carbon savings and improved air quality, as it emits far fewer pollutant emissions.

“The granting of planning permission is the final piece in the jigsaw for this ground-breaking project, as we already have the Avonmouth storage facility and agreement in principle from Bristol Port and landowners for the pipeline route,” said Flogas Managing Director Lee Gannon.

“This means we’re now perfectly placed to start talking to prospective partners from across the supply chain who want to join us in this venture,” added Gannon.

“Avonmouth offers an excellent collaborative opportunity, one that will provide important access to the global market and enhance security of supply to our off-grid customers,” he stated.

Gannon added that the next phase of design was currently underway and with completion of construction potentially seen as early as 2025.

Sept 22 (LNGJ) - The UK Isle of Grain import terminal on the Medway River estuary in the County of Kent, southeast of London, is scheduled to discharge a US cargo on September 23 being delivered by the 174,000 cubic metres capacity “GasLog Hong Kong”, according to shipping data. The cargo was lifted on September 10 from the Cameron LNG plant at Calcasieu Pass in Louisiana.

Gazprom said the booking for the transit of Russian natural gas via Ukraine remained at the same level of previous days on the third day of the Nord Stream 1 pipeline maintenance shutdown as more LNG cargoes head for the European Union to partially offset the lower gas volumes.

Feb 17 (LNGJ) - The laden LNG carrier,  the “Arctic Discoverer” with 137,760 cubic metres of capacity, is scheduled to arrive on February 18 at the UK Isle of Grain import terminal on the Medway River in Kent, according to the Thamesport Authority. The vessel had departed loaded from the Huelva terminal in southwest Spain on February 14 after arriving at the Spanish terminal from Rotterdam in the Netherlands.

Jan 18 (LNGJ) - The Singapore-flagged “BW Pavilion Aranda” with 173,400 cubic metres of capacity was discharging a cargo on January 18 at the UK Isle of Grain LNG import terminal. The facility is located on the Medway River southeast of London and is operated by National Grid plc. The cargo was lifted on January 6 from the US Cove Point export plant at Chesapeake Bay in Maryland.

UK natural gas prices hit a record level as system operator National Grid issued warnings on supply deficits and more coal-fired power was required in the absence of LNG shipments mostly drawn to North Asia by higher spot prices.

Europe’s largest LNG import terminal, the Isle of Grain facility located 45 miles southeast of London on the Medway-Thames estuary in Kent, has received 22 LNG shipments in 2020, including its 500th overall cargo, as the UK’s three terminals have unloaded around 60 shipments in two-and-a-half months.

US cargoes and others from Atlantic Basin exporters as well as Russia have been pointed at the UK as a key destination as prices have tumbled in Asia at just over $3.00 per million British thermal units for most of 2020 amid a global over-supply.

The UK National Balancing Point (NBP) price was last at the equivalent of $2.95 per MMTU, down from $3.70 per MMBtu in January, while the main Continental European price, the Dutch Title Transfer Facility (TTF), has tracked the UK benchmark, but was slightly higher at $3.00 per MMBtu.

“We’re delighted to confirm that we welcomed the 500th ship at our LNG import terminal on the Isle of Grain,” said Simon Culkin, Terminal Manager at National Grid's Grain LNG.

“The ‘LNG Merak’ berthed, delivering a cargo from Zeebrugge, and is the 22nd ship to arrive at Grain this year,” added Culkin.

The 174,000 cubic metres capacity “LNG Merak” is one of the newest vessels transporting cargoes from the Russian Yamal export plant in northern Siberia, as well as trans-shipments from ports such as Zeebrugge in Belgium.

“Since commissioning our terminal in 2005, we have taken delivery of LNG from 13 countries, further strengthening the diversity and security of UK gas supplies,” Culkin stated.

LNG carrier deliveries to Grain LNG have been more than matched by the two terminals at Milford Haven in Wales, South Hook LNG and Dragon LNG, which have welcomed a combined 35 cargoes.

The growing UK’s deliveries since January have come from nations such as the US, Qatar, Nigeria, Trinidad and Russia.

LNG shipments to Britain increased by around 64 percent in 2019 compared with the previous year and 2020 is expected to be  a record year as more US capacity has come on stream.

Natural gas currently makes up 40 percent of the UK’s total energy mix, up from 35 percent in 2015.

About 45 percent of UK natural gas comes from domestic resources in the North Sea and 55 percent is imported, with 15 percent coming from LNG and 40 percent from pipeline imports, mostly from Norway.

“LNG delivers much needed flexibility and energy reliability, enabling the integration of intermittent renewable energy and provides access to affordable energy,” explained National Grid’s Culkin.

“We’re very proud that LNG, supported by our extensive infrastructure at Grain,’ he added.

LNG imports have increased significantly over the past six months all over Europe, including to other large importers such as France and Spain.