News
Canvey LNG project progresses to next phase
The Canvey LNG project was announced last December and commenced with a feasibility study into the development of a strategic LNG import and regasification facility at the existing Calor LPG terminal at Canvey Island, Essex UK. The project is led by Calor Gas and also includes LNG Japan Corporation, Joint Venture of Sumitomo Corporation and Sojitz Corporation, as a partner. Following this study Centrica has now been selected as a gas supply partner and would hold equity in the facility, together with capacity rights enabling it to deliver supplies to their British Gas customers from a range of international sources. A full scale planning application and project plan is now being developed.
The project proposal will include the construction of two LNG storage tanks, reinforcement of the existing jetty and a new connection to the National Transmission System which would create a 5.4 billion cubic metre (bcm) LNG import terminal capable of delivering approximately 5 per cent of the UK’s annual gas demand. As a ‘Brownfield’ project, an operational facility at Canvey would see significant cost savings compared to a ‘Greenfield’ site.
Subject to planning approval, a decision to progress to construction is expected by the end of 2006, with completion around the end of the decade.
Canvey delivered Britain’s first ever LNG supplies in 1964 and during its operational lifetime received over 900 cargoes of LNG. The terminal was decommissioned in the mid 1990s but was then converted to import and store LPG. It has been owned and operated by Calor Gas Ltd since 1998 and it continues to receive cargoes of LPG on a regular basis.
This project is one of a small number of proposed or planned regasification projects within the UK.
Howard Kerr, Managing Director of Calor Gas and Chairman of the Canvey LNG project said, “We are delighted to welcome Centrica to join LNG Japan and the rest of the project team. We believe that it is vital for UK plc to source natural gas supplies from a range of international areas and an operational project at Canvey would provide a gateway to import gas into the UK. The whole project team looks forward to developing a state of the art facility that will enable British customers to enjoy a safe and secure supply of natural gas for decades to come.”
