GAS.- South Hook, Cutting-Edge Technology for a Fast-Growing LNG Market

Europe's biggest regasification terminal, South Hook in Wales stores gas shipped from Qatar, then distributes it in the U.K. market. The facility is a critical component of Qatargas 2, the world's first integrated LNG project.

The Challenge: Securing Markets for Qatar's Production and Supplying Europe

The liquefied natural gas, or LNG, industry transports natural gas by ship. Free of the geographical and geopolitical constraints of gas pipelines, it can match resources and local demand that are often located at great distances from one another. Liquefied for easy shipment, LNG has to be regasified at a facility close to consumer markets so that it can fed into the transmission network for delivery to end users.

The South Hook regasification terminal is a key component of the world's first fully integrated LNG project, Qatargas 2, which includes:

  • Natural gas liquefaction plants in Qatar.

  • Purpose-designed LNG carriers to ship the LNG to the United Kingdom.

  • The South Hook regasification terminal in Milford Haven, Wales to store, regasify and then distribute the gas to end consumers.

South Hook guarantees both secure markets for Qatar's production and a secure natural gas supply for Europe, at a time when the North Sea gas reserves are beginning to dwindle.

Technology: An Impressive Storage Capacity

Built between 2004 and 2010, the South Hook terminal has a jetty and two berths large enough to accommodate the world's biggest LNG carriers (260,000 cubic meters). Able to regasify nearly 15.6 million tons of LNG and distribute 21 billion cubic meters of gas a year, South Hook is the biggest terminal in Europe. It has five storage tanks 40 meters high and 100 meters in diameter, each with a capacity of 155,000 cubic meters. Insulated by a double concrete containment, they are kept at a temperature of -160 °C to maintain the gas in a liquid state.

In addition, 15 regasifiers reheat the LNG to return it to a gas, so that it can be piped to customers via the national transmission system.

Uncompromising Safety and Environmental Standards

The South Hook terminal's operator does everything possible to meet the highest safety standards and limit impacts on the environment and neighboring communities:

  • Regulatory compliance.

  • Application of and strict compliance with safety and environmental standards.

  • Uncompromising implementation of safety procedures.

  • Regular training in safety and environmental protection for employees.

  • Selection and use of the most efficient equipment during the terminal's design and construction phases, per design and building codes.

A large section of the land — over 100 acres — to the west of the terminal is allocated as a conservation area that forms part of the Pembrokeshire Coast National Park. Numerous marine life surveys have been conducted on and around the site and stringent measures have been taken to prevent spills.

Working with the Local Community

The South Hook terminal has created a hundred permanent jobs and acts as a catalyst for other businesses in the Pembrokeshire region to develop.

It aims to develop and support the local community by investing in projects and initiatives that promote areas of safety, environment, education and wellbeing. In 2011, South Hook lent its support to over 170 local organizations from the local community.

  • Partners: Total 8.35%; Qatar Petroleum 67.5%; ExxonMobil 24.15%.
  • Volumes: 100 deliveries unloaded (10.4 million metric tons of LNG) and 157 terawatt-hours of gas distributed (about 13% of demand in the United Kingdom) in 2011. The South Hook terminal meets 20% of the demand for gas in the United Kingdom.
  • Project cost: £1.097 billion.