Teesside LNG Project Waiting For ‘Right Window’
When commodity trader Trafigura announced they were taking on a recently decommissioned floating LNG terminal in Teesside, it was positive news for automatic tank gauging returning to the area. However, since the takeover in 2017, movement has slowed in re-instating the site for LNG import.
Now, a spokesperson for Trafigura has said that the trader is waiting for the ‘right market window’ to trigger the construction work that will enable the site to continue to import LNG, according to .
The spokesperson said that all the technical design and permitting work had been completed, so that the site was ready to be finished when the right conditions present themselves: “Teesside remains a flexible anchor position in our infrastructure portfolio and we have long-term exclusive access to this asset,” they said.
What these conditions are and when they will be met remain to be seen. Shares in gas prices are on a steady increase and have been over a long period, and with the UK losing its only seasonal storage site at Rough last year, the re-initiation of the site was seen as a positive way to introduce greater flexibility into the UK energy market.
The facility used to be owned and operated by Excelerate Energy, who shut down the site after eight years in 2015 when it came to, as they said, the end of its economically viable lifespan. The site was able to send up to 17 million cubic metres of gas per day into the UK National Transmission System.