South Hook Gas, EGL Sign Deal (UK)

 

South Hook Gas and EGL have signed a new framework agreement for access to spare LNG import capacity.

This agreement will increase the amount of liquefied natural gas (LNG) that may be delivered into the United Kingdom, helping to meet the country’s energy needs and follows on from a similar deal signed by South Hook Gas last month with ConocoPhillips.

South Hook Gas already delivers gas to ExxonMobil Gas Marketing Europe and also provides regasification services to Total Gas & Power. Under this new agreement, when capacity is available, EGL can ship LNG to the South Hook Terminal, Europe’s largest LNG re-gasification terminal, and the LNG is converted into gas and supplied into the UK market.

Rashid Al-Marri, General Manager at South Hook Gas said, “It is just over a year since we commenced operations and we regularly supply around 15% of the UK’s gas requirements. This new agreement with EGL is a significant step forward in promoting the utilisation of the terminal’s capacity.”

Markus Brokhof, Head of the Gas Supply & SEE division and Member of Executive Management at EGL AG said, “We are very pleased to have signed this framework agreement with South Hook Gas. The UK is a key market for LNG and we see various opportunities to increase our gas activities working together with South Hook Gas.”

Nick Taylor, Managing Director at EGL UK said, “This agreement will help to support us in the development of our increasing activities in the UK.”

South Hook Gas has supplied gas every day into the UK market since the commencement of operations in 2009 and can supply around 20% of the UK’s gas requirements.

LNG is a flexible and safe energy source, and as one of the cleanest burning hydrocarbons, natural gas can help the UK to reduce its CO2 emissions whilst providing increased security of supply.

[mappress]

Source: EGL, May 27, 2011;