Flogas has invested millions in a new tanker fleet as it pushes LNG.

Flogas targets aquaculture for ‘off-grid’ fuel sales

A supplier of liquefied natural gas (LNG) has said it has “huge” interest from potential customers as it targets sales to Scottish fish farms that are off the gas grid.
Author: Editors

Leicester-based Flogas has signed a deal with liquid transport specialist Stolt-Nielsen to ship LNG to Rosyth, a move which it says will reduce the price of the fuel.

Until now Flogas has had to bring LNG north from the Isle of Grain, Kent by road tanker, an expensive way to transport bulk liquid hundreds of miles.

LNG is created by cooling natural gas to an extremely low temperature (-162ºC) to turn it into a liquid that takes up 600 times less space than when it’s a gas. Flogas claims it is non-toxic and non-polluting, making it ideal for off-grid high energy users looking for a greener, more cost-effective alternative to oil.

Rob McCord: “The demand is certainly there.”

Flogas’ head of sales, Rob McCord, told World Fishing & Aquaculture website: “Often located in off grid locations, fisheries and fish processing plants will be among the biggest beneficiaries of this unique project. Not only will it help reduce energy costs, but it will also help cut carbon emissions.

“We’re working on obtaining permits at the moment, and once we have them construction will begin.”

New customers

“Flogas already supplies gas to many off-grid businesses in Scotland, and the interest we have from potential new customers is huge,” added McCord. “The demand is certainly there. We now need to work with the Scottish Government and our other stakeholders to bring the project to life.”

Once permits are obtained, building of an LNG terminal can begin in Rosyth which will generate more than 100 jobs during the 18-month construction phase, with 50 more to follow once the site is up and running. Set to be completed in 2019, the project will see LNG shipped by Stolt-Nielsen LNG via small-scale LNG carriers and stored in bulk at Rosyth before being distributed by Flogas road tankers across Scotland and the north of England.

Earlier this year Flogas signed a landmark 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.

The five-year deal sees Flogas suppling 10,000 tonnes of LNG a year to the system, that provides natural gas to Oban and Campbeltown in west Scotland, and Thurso and Wick in the north.

At the time, McCord said: “We’ve invested heavily in LNG, spending millions on a new fleet, a specialist LNG team, and dedicated LNG fleet scheduling. The result is that we have the most comprehensive LNG network in the UK.”

Published: 14/07/2017 at 4:20 pm

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