Flogas Britain’s business development director, James Rudman tells Tank Storage Magazine how it’s keeping up with the ever-changing energy market
Flogas Britain has completed a tripartite deal with North Sea Midstream Partners Limited (NSMP) and Exolum Seal Sands (Exolum) at the Teesside gas processing plant, UK. The deal is set to boost the resilience of off-grid energy across the north of England and Scotland and provide security of supply to homes and businesses in the region. At present, the Teesside plant handles much of the gas extracted from the North Sea, including a significant tonnage of propane. However, James Rudman, business development director at Flogas Britain, explains: ‘To date, this gas has not been turned inland for UK use and is instead exported to global markets. We wanted to change this.’
Over the years, the UK off-grid gas market has become a net importer of propane. However, there’s a definite requirement for a more stable supply. Demand is growing, especially as off-grid homes and businesses are set to move away from oil to a lower carbon alternative. According to a report by WLPGA on LPG and bioLPG, propane has a 20% lower carbon intensity than oil and emits far fewer pollutants, so Flogas believes it is set to play a key role in the energy transition for off-grid Britain.
‘This is why we were so keen to find away to bring in propane from the North Sea. Teesside is an excellent opportunity to boost the resilience of off-grid energy across the north of England and Scotland, and our new tripartite deal means we’ll see up to 120,000 tonnes of propane turned inland later this year,’ says Rudman.
LOCATION AND COLLABORATION
For more than two decades, Flogas has been investigating ways of getting propane extracted from the North Sea to be turned inland. Two years ago, it was decided that the caverns storing the propane, were going to be decommissioned. Flogas contacted NSMP and Exolum to find a way to load the propane on to road tankers for inland distribution to its customers. ‘We were able to form an agreement with NSMP and Exolum Seal Sands, whereby NSMP will transport propane to existing infrastructure owned by Exolum, and then we act as the off-take partner, distributing the supply across the region,’ explains Rudman.
The current Teesside site is dormant and hasn’t been used in over a decade. However, works for the collaboration are underway, and propane is planned to be brought in from October 2023. In addition to storing propane, Flogas has the opportunity to consider infrastructure for other products handled at the processing plant, including butane. The facility also has capacity to be a gateway for renewable gases in the future, with space for additional storage vessels.
NSMP will bring in large volumes of gas via the 404 km-long CATS gas pipeline that’s connected to various gas fields in the North Sea, as well as having an existing pipeline connection to Exolum’s nearby storage facility. ‘This site was the perfect location, as there were five unused tanks there, which were capable of being converted to handle propane,’ says Rudman.
Flogas expects that all off-grid homes and businesses in Scotland and the north of England will see the benefit of an increased and more resilient supply of gas. ‘The collaboration will also be beneficial to future customers moving away from fuels like oil, and looking for a cleaner, more efficient alternative,’ says Rudman.
OFF-GRID ENERGY
‘Flogas is leading the industry in improving the security of the UK’s off-grid energy supply, reducing the reliance on imports, and providing clear options for renewable energy in the future, in support of net zero targets,’ says Rudman. The company’s new supply at Teesside will represent about 10% of the current market size and offers a significant increase of product to improve security and resilience of supply.
In addition to the development in the north at Teesside, Flogas also has a solution in the south of England. It is developing the UK’s largest above ground propane storage facility in Avonmouth, Bristol, which will have the capacity to store 34,564 tonnes. Planning permission for a pipeline into Avonmouth was recently granted, linking the UK to a diverse, global supply of off-grid gas, and enabling it to import ship cargos of up to 20,000 tonnes.
ADAPTING FOR THE TRANSITION
Flogas is dedicated to helping off-grid customers navigate their pathway to net zero emissions. ‘Propane is one of the cleanest, most efficient conventional off-grid fuels available at scale, and customers switching from other fuels, such as oil, benefit from significant carbon savings and better air quality with fewer pollutant emissions,’ explains Rudman. ‘Propane has an important role in the off-grid energy transition.’
Thinking to the future, Flogas is serious about meeting its 2040 ambition. ‘We want to provide 100% renewable energy solutions to customers and have a solid plan in place that involves a phased introduction of renewable products, building on our existing portfolio,’ says Rudman.
As well as helping customers on the road to net zero, Flogas is also focused on making its own business fit for the future. Rudman says: ‘We have pledged to reduce our direct carbon emissions by 20% by 2025, and we aim to become completely carbon neutral by 2050.’
FUTURE OF FUELS
At the moment, Flogas’ priority is to get the propane infrastructure delivered, but it is also looking at the possibility of butane and other products in the future. ‘One exciting opportunity is to look at rDME (renewable Dimethyl Ether). This renewable fuel can be produced from municipal solid waste and has very similar properties to propane. In fact, it can be blended with propane up to a maximum of 20%, reducing the carbon intensity of the blended fuel as a result,’ says Rudman. Flogas plans to install an rDME storage tank in the next two years to enable these propane/rDME blends to be loaded on to road tankers, which will only increase its capacity for off-grid energy.
On top of this, Flogas also acquired Protech Group last year, adding a full suite of low carbon and renewable technologies to its portfolio, including air-source and ground-source heat pumps, solar PV, and hybrid systems. ‘This means we’re now fully equipped to help customers meet legally binding carbon reduction targets,’ says Rudman.
Flogas is making progress to provide a stable supply of off-grid energy in the UK. The collaboration at Teesside will strengthen the use of off-grid energy and will turn up to 120,000 tonnes of LPG inland from October 2023.
For more information:
www.flogas.co.uk
www.wlpga.org
