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Why is LNG (liquefied natural gas) needed in the UK?
The need for LNG (liquefied natural gas) in the UK LNG (liquefied natural gas) has become a viable alternative to oil or piped gas (natural gas transported from its country of origin through pipelines). Indeed, LNG (liquefied natural gas) is increasingly being seen as the best technology for large-scale movement of natural gas over long distances. And LNG (liquefied natural gas) terminals provide flexibility as the gas can come from anywhere in the world, especially countries too far away to supply gas by pipeline. Diversity and security of supply are closely linked to each other. Diversity can increase the security of supply by reducing the impact of disruption from any one source, thereby reducing the likelihood of sudden shortages. LNG (liquefied natural gas) has been used for many years in countries such as the USA, Korea and Japan. There is increasing use worldwide as advances in technology make LNG (liquefied natural gas) more economical to produce, transport and store, opening up a wider market for its use. Europe also uses imported LNG (liquefied natural gas) for commercial and household use with six terminals in Spain and there are regassification plants in Portugal, Belgium, France, Italy and Greece*. *Source GIIGNL 2008. Increased demand for natural gas According to industry forecasts there will be a 16% increase in UK annual gas demand by 2011/12, with peak demand growing by 20% over the same timeframe. With domestic gas production in decline, the UK will become a net importer of gas in the future. The industry’s forecasts, supported by those of the UK Government, show the UK’s dependency on imported gas will rise to nearly 50% by 2011/12. In order to access the still plentiful supplies of gas that exist elsewhere in the world a substantial amount of new infrastructure is required. The Government's Performance and Innovation Unit (PIU) 2002 publication, ‘The Energy Review’, identified the need for the private sector to develop LNG (liquefied natural gas) terminals to provide greater diversity of fuel sources. A more local consideration was the enhancement of the gas transmission infrastructure in the Pembrokeshire area, which was recognised as being of limited capacity, hence a barrier to the potential economic development of West Wales. Furthermore, there was and remains a demand for fuel gas within the existing petroleum refining industry in Pembrokeshire and similarly for the new gas fired power station that will be built across the waterway at Pembroke; meeting these needs will help to safeguard regional jobs and investments. |
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