LNG terminal to reopen at Teesport

Trafigura apparently wants to cash in on falling prices and the decline in coal. Having access to an import location will provide greater flexibility for the firm as LNG supplies increase.

“LNG infrastructure is coming down in cost, and liquidity in the LNG market is getting deeper, making these kinds of projects possible,” said Hadi Hallouche, head of LNG trading at Trafigura.

Trafigura said Teesside LNG would increase the UK’s supply security and that it plans to invest in other terminals where it sees potential demand.

“We’re interested in having more infrastructure both in Europe and around the world,” said Mr Hallouche.

David Robinson, CEO of PD Ports, added: “This is a major investment for Teesside and significantly reinforces the attraction of Teesport and the region’s wider supply chain to support the successful development of large scale, long-term energy infrastructure projects of this kind.”

“This announcement is another important step in positioning Teesport as a major Energy Hub for the UK, driving economic growth and complementing this leading Industrial Platform. It is also testament to the high level of confidence towards investment in Teesside.”

The original terminal at Teesport was closed two years ago as it attracted only a smattering of business. It was originally developed by the Saudi Arabia Basic Industries Corporation (SABIC) following its agreement with Shell LNG for the supply of LNG fuel to its vessels when calling at the port.

Trafigura is set to invest around $30m into the site and plans to start operating next year.

The terminal will accept large vessels called floating storage and regasification units.

Trafigura said it has agreed a long-term lease from PD Ports and the two are now working on obtaining the necessary permits for the project from authorities.