UK searches for more sources for LNG as volumes decrease

UK’s busiest LNG import terminal, South Hook, wants to make its sources of supply more broad, at a time when strong Asian demand drives away cargoes from Qatar, the world’s biggest exporter and the terminal’s majority shareholder.

Volumes to the terminal have been reduced to half during 2018 compares to 2017. Namely, the volumes account to 1.2 million cubic meters (mcm) which is just 15% percent of 2016 volumes for the same period.

As Reuters reported, South Hook, in Wales, aims to broaden the specification of its gas since January. The Joint Office of Gas Transporters (JOGT), which is responsible for the rules for transporting gas in Britain, approved the proposal on Thursday, May 17.

The terminal can now increase oxygen limits within the gas it delivers to Britain’s network, in order to achieve better diversity of gas composition of future cargoes at South Hook LNG Terminal, the proposal document to the JOGT said.

South Hook did not comment something besides the public documents on the issue, and did not reveal from which other countries it aims to get its LNG.

However, analysts have noted the expansion of US LNG exports because of two liquefaction plants in the past two years, Sabine Pass in Louisiana and Cove Point in Maryland, which are leveraging domestic shale gas production.