Flogas Britain has announced that it has agreed a deal with gas distribution company, SGN, to supply LNG to an independent grid system that serves four Scottish towns lying outside the national gas grid.
Under the five-year agreement, Flogas will supply 10 000 tpy of LNG to the system, which provides natural gas to Oban and Campbeltown in west Scotland, and Thurso and Wick in the north of the country.
Flogas will supply the LNG from the Isle of Grain that feeds directly into the SGN pipeline serving the towns. LNG was previously supplied from Avonmouth, which has recently been decommissioned.
Joel Martin, Regulatory Finance Manager at SGN, said: “With Avonmouth closing later this month, we had to find an alternative solution for our customers that are connected to the LNG-fed Scottish Independent Undertakings.
“Following a competitive tender, it was Flogas’ pricing, infrastructure and professionalism that led us to choose them for our supply. They have an extremely well-developed LNG network, are market leaders, and we trust them completely to provide us with an uninterrupted supply of LNG at a competitive price.”
Head of Sales at Flogas, Rob McCord, added: “We’re delighted to be working with SGN. The deal will see two large, successful companies coming together to fill the gap created by the Avonmouth closure.
The supply to SGN will also be enhanced by an agreement Flogas has just reached with Grain LNG, a subsidiary of National Grid. Under the agreement, Flogas has secured 1000 commercial slots at the Grain LNG facility, making it the largest ever commercial slot arrangement signed by Grain LNG.
The agreement follows the announcement in November 2015 that Flogas was given the honour of ‘first fill’ at the Isle of Grain LNG terminal.
McCord concluded: “Our relationship with Grain LNG and National Grid is going from strength to strength. This slot agreement will allow us to build on our current successes, and continue to innovate and lead the LNG sector.
“It strengthens our infrastructure further, providing additional reasons for customers like SGN to work with us.”
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/11052016/flogas-inks-deals-with-sgn-and-grain-lng-2426/