Liquefied petroleum gas (LPG) supplier Flogas Britain has completed a deal with North Sea Midstream Partners Limited (NSMP) and Exolum.
The deal will see up to 120,000 tonnes of LPG turned inland at Teesside from October 2023.
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.
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.
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,” said James Rudman, business development director at Flogas Britain.
“Our vital investment in Teesside, alongside partners NSMP and Exolum 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.”
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.”
Flogas secures LPG deal with NSMP and Exolum
