The deal is set to boost the resilience of off-grid energy across the North of England and Scotland, providing security of supply to homes and businesses in the region. The facility also has capacity to be a gateway for renewable gases in the future.
Currently, gas reserves from several North Sea fields are transported to NSMP’s gas processing plant at Seal Sands, where LPG is fractionated and then exported to global markets. As a result of the deal, NSMP will transport this LPG to existing infrastructure owned by Exolum, and Flogas will act as off-take partner, distributing the LPG supply across Northern England and Scotland.
This development is part of Flogas’s unwavering commitment to improve the security of the nation’s off-grid energy supply, reducing the reliance on imports, and providing clear options for renewable energy in the future in support of Net Zero targets.
It follows the company’s recently granted planning permission for a pipeline into the UK’s largest above-ground LPG storage facility in Avonmouth. Once complete, this will link the UK to a diverse, global supply of LPG, as well as emerging sources of renewable fuels, enhancing security and affordability for off-grid customers nationwide.
“While we continue to lead our customers towards a Net Zero future, we recognise we must also ensure supply stability today,” says James Rudman, Business Development Director at Flogas Britain. “Our vital investment in Teesside, alongside partners NSMP and Exolum (who like us, have long-standing credibility in the energy sector), will deliver resilient national supply. It will ensure business continuity for thousands of customers across the North of England and Scotland, and safeguard our commitment to provide reliable off-grid energy to even the most remote locations.”
In advance of the peak heating season in Winter 2023, a road loading rack and infrastructure to receive the LPG, are being constructed at Teesside. The facility is also future-ready and has space for additional storage vessels to be installed, providing the opportunity to blend renewable fuels, such as bio-propane and renewable Di-Methyl Ether with LPG in the future.
Luke Robbins, Commercial Director, NW Europe at Exolum, said: “We are delighted to be working together with Flogas and NSMP to deliver such an important project for the Teesside area. We are committed to supporting the needs of our customers and this investment at our Seal Sands terminal is further evidence of Exolum’s track record of investment in the UK’s energy infrastructure.”
Sayma Cox, Chief Executive Officer at NSMP, added: “NSMP is pleased to partner with Flogas Britain and Exolum in Teesside. The partnership continues to ensure security of supply in the UK and strengthens the resilience of the UK off-grid market at a crucial time for homes and businesses across Northern England and Scotland.”