Teesside LPG terminal boosts energy security for off-grid Britain

New facility set to improve security of supply across northern England, Scotland, and North Wales 

A NEW liquefied petroleum gas (LPG) terminal is now operational in Teesside that will improve the security of the nation’s off-grid energy supply – providing up to 90,000 tonnes of LPG each year to homes and businesses across northern England, Scotland, and North Wales.

Commissioned by LPG suppliers Flogas Britain, alongside partners North Sea Midstream Partners (NSMP) and Exolum Seal Sands Ltd (Exolum), the facility is set to improve the security of LPG supply nationwide, whilst also reducing the reliance on imports.

‘This facility delivers a significant, critical supply of LPG to the UK and we’re delighted to see it now up and running,’ said Paul Horton, chief operations officer at Flogas. ‘This has been a vital part of our plan to provide proper energy resilience for both our commercial and domestic customers, and in the short time it’s been live, we’ve already seen a huge step change in our supply capability in the North.’

Previously, LPG – extracted from North Sea gas reserves – at the NSMP-owned Teesside Gas Processing Plant (TGPP) was being exported to global markets. Now, thanks to the deal between Flogas, NSMP, and Exolum, it’s being turned inland instead, helping to improve the UK’s own supply.

LPG is fractionated at TGPP, then transported and stored in five 125-tonne storage bullets, owned by Exolum. With their extensive delivery network, Flogas deliver the LPG across northern England, Scotland, and Wales, reaching even the most remote locations.

‘Alongside the new Teesside terminal, Flogas have invested heavily in developing the UK’s largest above-ground LPG storage facility in Avonmouth, Bristol, which went live last year,’ added Mr Horton. ‘Now Teesside is fully operational, any surplus LPG supply we have, will be transferred, and stored at Avonmouth to help prepare for the peak heating season in winter 2024. With the two sites working in parallel, we’ll be able to provide a new level of energy security for the UK’s off-grid community – it’s a real game-changer.’

Over the past 12 months, the team has been readying the Teesside facility for the new intake, constructing road loading racks and process infrastructure to receive the LPG. It also has the capacity to be a gateway for renewable gases in the future with space for additional storage vessels to be installed. This provides the opportunity to blend renewable fuels, such as bio-propane and renewable Di-Methyl Ether (RDME) with LPG in the future, as the UK moves closer towards meeting Net Zero targets.

Gorka Penalva, commercial lead NWE at Exolum, said: ‘We’re fully committed to enhancing the UK’s energy infrastructure and our investment at our Teesside terminal has been a key project for us. We’ve worked closely alongside NSMP and Flogas to make this site a reality, and we’re proud to have been part of such an important venture that will positively impact off-grid homes and businesses in need of a secure, resilient LPG supply.’

Cameron Slane, asset director at NSMP, added: ‘By joining forces with Flogas and Exolum and pooling our collective expertise, we’ve been able to deliver a best-in-class export system for our customers. We look forward to continuing to partner with Flogas to support projects to blend renewable fuels into propane fractionated at Teesside Gas Processing Plant, which will provide another unique advantage of utilizing NSMP’s infrastructure.’