Representatives from UK Government Visit South Hook LNG Terminal

Representatives from the UK Department of Energy & Climate Change (DECC) and Foreign & Commonwealth Office (FCO) made a visit recently to the South Hook LNG Terminal in Wales. The visit was hosted and organised by South Hook Gas, which manages the import capacity and commercial arrangements for the terminal together with South Hook LNG Terminal, which operates the facility, and the South Hook CHP project team which is investigating the potential for a new Combined Heat & Power (CHP) plant adjacent to the existing facility.

During their visit, South Hook Gas explained the transformation in the UK gas market in recent years thanks to the investment in gas pipelines and LNG terminals, giving the UK access to additional gas supplies and so improving energy security. Since commencing operations in 2009, more gas has been delivered in the UK gas system via the South Hook LNG Terminal than through any other LNG terminal. The company also highlighted how natural gas can help reduce greenhouse gas emissions by replacing coal and oil use, not just in the power sector, but also in road, marine and rail transportation.

South Hook LNG gave the guests a presentation about the terminal, highlighting its operational reliability underpinned by the highest of safety standards. They also explained the benefits of the facility to the local community, not just through the inward investment, use of local contractors and jobs that it created, but also thanks to its extensive conservation and community relations activities. Nationally, the facility is a key part of the UK’s energy infrastructure.

The South Hook CHP project team outlined to the UK officials the details of the proposed up to 500MWe CHP plant which is designed to operate with an efficiency close to 90% compared with around 55%-60% efficiency for a conventional gas power plant. Under current project plans, the facility is expected to commence commercial operations in 2017.
The proposed plant has the potential to provide enough electricity to power 900,000 homes and, by locating it next to the terminal, the combined emissions of the two facilities will be potentially reduced by the equivalent of taking 1,000,000 cars off the road.

The UK officials were taken on a tour of the terminal and were shown the central control room, where the liquid and gaseous natural gas flows are managed, and the LNG storage tanks and the 1km long jetty and its unloading facilities.

Commenting on the visit, Matt Sutherland, Head of Energy Security at the FCO said, “Major investments like South Hook create local jobs, strengthen the UK’s energy security, and demonstrate the attractiveness of the UK as a place to do business. The FCO works to build Britain’s prosperity by attracting inward investment in projects like South Hook, as well as increasing UK exports overseas, opening markets and promoting sustainable global growth.”

Ed Stafford, Head of Gas Markets Policy at DECC said, “LNG terminals like South Hook play a critical role in providing secure gas supplies for our homes and industry. The UK welcomes major investment in our energy infrastructure to support employment and drive economic growth.”