South Hook Gas Highlights Growth Opportunities for LNG Supply and Demand in Europe

Rashid Al-Marri, General Manager of South Hook Gas was one of the key speakers at the recent Gas and Electricity Summit in Paris and Euroforum Gas Conference in Berlin. In his speeches, Al-Marri explained that population growth and rising living standards were likely to drive global gas demand for the foreseeable future, and that this would also be reflected in continued growth in LNG supply and demand.

Across Europe, countries are grappling with the energy trilemma of energy security, cost competitiveness and decarbonisation and Al-Marri highlighted the cost competitiveness of gas versus other energy sources, its lower emissions compared with coal and oil use not just in the power industry but as LNG in the transport sector. Indeed, in the US, gas powered cars, trucks, buses and trains are helping emissions to fall sharply there and these markets together with the marine sector, offer some attractive opportunities for LNG.

Al-Marri explained how the arrival of LNG had strongly improved energy security in Europe as it now has access to additional sources of natural gas from farther afield. Indeed South Hook Gas has grown to become one of the largest LNG importers in Europe with the potential to meet around 20% of UK gas demand. In less than five years, it has imported more than 330 LNG cargoes and supplied the market every day since commencing operations in 2009. To date, these cargoes have been delivered from the world’s largest LNG producer, Qatar, and that the investment made in South Hook Gas and the South Hook LNG Terminal demonstrates the long-term commitment to the European gas market by their shareholders.

He concluded by explaining that South Hook Gas’ mandate was to import LNG and to maximise the utilisation of the capacity of the South Hook LNG Terminal and the company had signed agreements with a number of counterparties interested in potentially delivering LNG to the UK market and would welcome similar discussions with any other company wanting to supply the UK market.

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LNG World News Staff, December 17, 2013; Image: South Hook