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Ship Delivers Increased Energy Security for Britain

DTI logoA world first 'liquid gas' shipment on Teesside is helping Britain lead globally in diversifying energy supply, Alistair Darling, Trade and Industry Secretary said today.

The Excelerate project with enough power in one 20,000 tonne shipment to fuel 60,000 homes will for the first time turn liquid gas into the gas we use at home on board the boat rather than onshore. Making it quicker to deliver and reducing the impact on the environment.

The delivery means that in the last 6 months the UK has dramatically increased the amount of energy it can import by 140%, diversifying and increasing security of supply.

Alistair Darling Whilst touring the ship, Alistair Darling, Secretary of State for Trade and Industry said:

"Our energy supplies will increasingly come from a wide range of sources, meeting the twin challenges of energy security and climate change. It makes sense for consumers and business.

"This project together with others which have come on-stream this winter, like the pipelines from Norway and the Netherlands have dramatically increased the amount of energy we can import.

"It is also a tribute to the British gas market. Our liberalised markets and regulatory approach have given this company the confidence to do business here. This is good for our economy as well as our energy security."

The project, led by the US based company Excelerate, is the fastest ever time to market of any LNG facility in the world. The construction work began in the summer, meaning that laying all three pipelines, building the loading arm and refurbishing the jetty has all happened in under a year.

Kathleen Eisbrenner, President and CEO of Excelerate Energy, said:

"Excelerate Energy is proud to have built the world's first dockside regasification facility in the United Kingdom."

"The combination of a clear regulatory process and a constructive commercial environment allowed Excelerate to bring Teesside GasPort on-line in only 12 months, another world first. We look forward to many years of serving the natural gas supply requirements of the United Kingdom."

Find out more:

•   This is the first dockside receiving facility in the world. It means that LNG can be imported from sources all round the world, regasified on board the ship, and delivered to shore as gas.

•   This first delivery of liquefied natural gas (LNG) comes from Trinidad.

•   This ship has two features. It functions as an LNG storage facility (so there is no need for enormous onshore storage tanks). And it has onboard re-gasification facilities; elsewhere these are onshore.

•   Whilst this shipment brings LNG from Trinidad, LNG could in the future come from a number of sources including the Middle East, Africa and Central America.

•   The other operational LNG terminal is on the Isle of Grain in Kent. The new facility at Teesside means the UK has doubled its LNG capability overnight. Further LNG import terminals are under construction at Milford Haven in South West Wales.

•   The present shipment was transported from Trinidad in one LNG tanker, and then transhipped at Orkney to the tanker that has made the actual delivery to Teesside. This enables the most economic use of the specialised delivery tanker, and the ship to ship transfer was a world first in commercial circumstances.

Posted 14/02/07

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