Wednesday, November 9, 2016

Specialist LNG Logistics Shipping Firm Forms Partnership with UK Gas Supplier

Tankers Destined for New Scottish Facility
Shipping News Feature
UK – A new joint project between Flogas Britain, which claims to be the UK’s leading liquefied natural gas (LNG) provider, and Stolt-Nielsen LNG Holdings Limited, a subsidiary of Stolt-Nielsen Limited a global provider of bulk liquid transportation and storage solutions, will see the Norwegian logistics outfit using ‘small scale’ LNG carrier vessels to import LNG via the Port of Rosyth, where it will be stored in bulk before distribution by Flogas to areas of Scotland not currently served by the existing natural-gas grid.

At present, Scotland’s off-grid natural gas is delivered by road tanker from Kent, South East England. The costs associated with the long distances are high, forcing many off-grid businesses to use oil to power their industrial processes, or pay a premium for gas, thus the new initiative will see the new ‘small scale’ LNG terminal in the Port of Rosyth, which will have a capacity of 10,000-15,000 m3 of the gas, as a step towards reducing the cost of energy for homes and businesses located off the national gas network.

With a target completion date set for 2019, the partners say the bulk LNG solution will deliver the gas more cost effectively, thus enabling users to switch to the more environmentally friendly fuel, which will help reduce carbon emissions in line with the Scottish Government’s Low Carbon Economic Strategy (LCES).

For the next phase of the project an engineering firm has been engaged to support the preliminary infrastructure and permissions for the small-scale LNG terminal at the Port of Rosyth. Once permits are obtained, construction of the facility can begin on the site, which the partners say will generate over 100 local jobs during the 18-month construction phase, and 50 more following completion. Fiona Doherty, Port Manager at Rosyth commented:

“We offer Flogas Britain and Stolt-Nielsen an appropriately warm welcome to the Port of Rosyth. As one of Scotland’s best connected ports, Rosyth is an ideal location for the storage and distribution of their LNG product and we look forward to working with them as the development of the project gets underway. At Rosyth we are committed to working with customers to support Scotland’s future growth.”

The LNG carriers Stolt-Nielsen propose to use will have a capacity of 7,500 m3 and the company has already completed the relevant permissions for a similar project with the Italian Government in Sardinia. Commenting on the agreement, Flogas Head of Sales Rob McCord said:

“This unique project is the beginning of Scotland’s LNG future and a chance to establish Scotland as an even greener nation. It will encourage the development of a natural gas infrastructure in Scotland’s remote regions and will attract future investments from leading industrial groups. Flogas already supplies gas to many businesses and housing estates in Scotland, and the interest we have from potential new customers is huge. The demand is certainly there. We now need to work with the Scottish Government and our other stakeholders to bring the project to life.”

Photo: Stolt-Nielsen and Flogas representatives celebrate the announcement of their new agreement.