Flogas Britain, distributor of liquefied natural gas in the UK, and Stolt-Nielsen LNG launched a joint project to explore bringing LNG to areas of Scotland not served by the existing natural-gas grid.
LNG will be shipped by Stolt-Nielsen LNG, a unit of Stolt-Nielsen, via small-scale LNG carriers and stored in bulk at the Port of Rosyth, before being distributed by Flogas across Scotland by road tanker, mainly to industrial customers, the company’s statement reveals.
The terminal is scheduled for completion for 2019.
At present, Scotland’s off-grid natural gas is delivered by road tanker from Kent, South East England, that is forcing many off-grid businesses to use oil to power their industrial processes due to the costs associated with long distance transport.
The bulk LNG solution would deliver LNG more cost effectively enabling users to switch to the chilled fuel.
The project partners have already selected an engineering firm for the next phase of the project. The selected firm has been engaged to support the preliminary engineering and permitting of the small-scale LNG terminal at the Port of Rosyth.
Once permits are obtained, construction of the facility can begin on the site, Flogas said.
Commenting on the agreement, Flogas’ head of sales Rob McCord said the project would “encourage the development of a natural gas infrastructure in Scotland’s remote regions and will attract future investments.”
“The demand is certainly there,” McCord said, adding that the two companies now need to work with the Scottish government and other stakeholders to bring the project to life.
Stolt-Nielsen has already completed the permitting for a similar project with the Italian government in Sardinia.