Flogas opens Teesside LPG terminal

UK distributor Flogas Britain has officially opened a new LPG terminal at Teesside in northeast England, which it says will boost the UK's security of supply by absorbing previously exported LPG.

Flogas, a subsidiary of Dublin-based DCC Energy, developed the terminal alongside midstream companies North Sea Midstream (NSMP) and Exolum. The facility will use LPG produced at NSMP's Teesside gas processing plant (TGPP) and stored at Exolum's tanks.

The terminal will supply around 90,000 t/yr to households and businesses in northern England, Scotland and Wales, Flogas says. Supplies from the facility started in February as part of its commissioning, with maximum capacity projected at 120,000 t/yr — volumes will depend on North Sea production and run rates at TGPP, the company says. The terminal — which is located near renewable DME firm Dimeta's Teesside plant project — can also be a gateway for renewable gases in the future, Flogas says.

Around 1.2mn t of LPG was exported from Teesside in 2023, accounting for 40pc of the UK's total. Supplies in the northern UK could become more vulnerable after Petroineos announced the planned closure of its 150,000 b/d Grangemouth refinery in Scotland earlier this year, although a large proportion of its supply was exported.

The UK consumed 2.4mn t of LPG in 2023, with demand forecast to rise to nearer 2.5mn t this year and in 2025, Argus Analytics data show. Domestic output stood at 3mn t, of which 1.4mn t came from refineries and 1.6mn t from gas processing.