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Canvey liquefied natural gas (LNG) project plans submitted

Plans to develop the UK’s newest liquefied natural gas (LNG) terminal at
Canvey Island will be officially unveiled today, with the submission of a
planning application to Castlepoint Borough Council.

Canvey was the terminal to receive the UK’s first ever shipment of LNG in
1964 and brings a strong heritage and safety record. Approval for the
redevelopment of the site could see an operational LNG terminal by
2009/2010,processing around 5% of the UK’s gas needs. Canvey is
strategically important givenits location close to the highest gas
demand areas of London and the South-East.

Owner of the existing liquefied petroleum gas (LPG) site at Canvey, Calor,
has teamed up with the UK’s largest energy supplier Centrica, parent
company of British Gas, and LNG Japan Corporation and Osaka Gas of
Japan in what could be a multi-million pound ‘brownfield’ development
creating up to 300 jobs during the construction phase and around 45 long
term opportunities.

With the UK becoming a net importer of gas in 2004 and predictions of 50% of
our supplies being imported by 2010, facilities such as Canvey are vital to
help deliver gas supplies for use in homes, businesses and power generation
in the future. Gas useage is predicted to grow by up to 10% in the next 10
years and with 40% of the nation’s power stations fuelled by gas, supply
routes into Britain are critical.

Before the North Sea boom, Canvey safely received over 900 cargoes of LNG
in its operational lifetime. The site, which was converted to store LPG in the
1990s, houses much of the key infrastructure needed to land gas in liquid
form from North and West Africa, the Middle East and Russia. The proposal
consists of developing two full steel and reinforced concrete LNG storage
tanks, together with new loading arms on the jetty and a regasification plant.

LNG is simply supercooled gas which in its stored liquid form is not flammable.
The LNG business enables gas in remote areas which would be uneconomic
to send by long distance pipeline, to be transported by specialist boats.

James Adam, Project Manager for Canvey LNG, said: “The headlines recently
have emphasised the UK’s need for new gas supplies and new gas import
capacity if we are all to continue heating our homes in the future, beyond the
gas needed by businesses, in industry and power generation.

“Canvey has already played a key part in helping safely deliver the UK’s gas
supplies since the 1960s and could play an important role in securing Britain’s
future energy needs.

“The planning application brings together four partners in Calor,Centrica,
LNG Japan and Osaka Gas, each with their own unique blend of experience
and expertise. This will be vital as we outline the benefits that Canvey could
bring to the UK and the local area in terms of jobs and other spin offs. All of
the partners will be working to one overriding priority – the safety of
employees and the local community and we look forward to demonstrating
that to the community of Canvey and a range of other stakeholders in the
weeks and months ahead.

More information can be found on the project at www.canveylng.co.uk

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