Qatargas, the world’s largest LNG producer, signed a five-year sales and purchase agreement with Petronas LNG UK on Wednesday . . . Under the agreement Qatargas will deliver 1.1 million tonnes of liquefied natural gas (LNG) per year to the UK-based venture until Dec. 31 2023, extending a current five-year contract that was due to expire on Dec. 31 2018.
Why are we importing a million tonnes of LNG from Qatar? Because we’re not producing enough gas of our own and as coal and oil fired power stations are shut down thanks to EU directives we’re becoming more reliant on importing the energy that we need.
Of course if the government stopped faffing about and got on with promoting fracking in this country we’d have a massive reserve of natural gas that we could tap into for years to come.
Further to my last post, one way companies have tried to smooth out gas demand is by storage such as the Rough facility in the North Sea.
But as this articlepoints out, it’s not as easy or cost-effective as you might think and as a result we’re all going to be paying more.
Centrica Plc’s Rough, the U.K.’s largest natural gas storage facility 9,000 feet below the North Sea bed, unexpectedly closed for the summer and will probably remain unavailable for most of the winter.
Why does this matter?
Rough accounts for more than 70 percent of Britain’s storage capacity. Without the facility, the U.K. will be more dependent on imports in winter, potentially making energy more expensive. Gas for winter delivery advanced 4.3 percent since June 21, the day before the full outage at Rough was announced. Storage levels at Rough are less than half the five-year average.
You can read more of the why’s and wherefore’s in the article but suffice to say it’s not good news, especially if we have a cold winter;
Gas exporters from Norway to Russia, already pumping record amounts of gas to Europe may be able to sell even more fuel to the U.K. this winter. Exporters of U.S. liquefied natural gas may also benefit.
Britons living near “fracking” developments will be able to decide how a 1 billion pound ($1.3 billion) shale gas wealth fund should be spent, either by accepting direct personal payments or supporting projects such as railways or flood defences, the government said on Monday.
There is still a lot of objections from certain areas to fracking, much of it based on myth and legend and a lack of understanding of the technology and also the differences between how the UK is supplied with tap water compared to the US.
Whether the green lobby like it or not, it will come to the UK and it will be good thing;
Britain is estimated to have plenty of shale gas resources in place, enough to cover the country’s annual gas needs for hundreds of years.
Imagine that – not having to rely on imports of fuel for years.
The quote from Greenpeace UK’s chief scientist that;
You can’t put a price on the quality of the air you breathe, the water you drink, and the beauty of our countryside
Is particularly specious;
Gas is far cleaner than coal and oil and by replacing these fuels with gas will improve air quality
Water quality will not be affected. Fracking takes place hundreds of metres below the water table and almost all UK water is supplied from treatment works where any unexpected impurities will be removed.
To claim to be concerned about countryside beauty while advocating covering our land in giant monstrous wind turbine bird shredders is totally hypocritical.
Hopefully the government will push forward without delay.
An interesting article from Hydrocarbon Processing about Scottish Petrochem giant, Ineos (owners of the Grangemouth refinery).
With natural gas prices in Europe more than double [the] costs in the US, INEOS Group has a novel solution: start fracking.
The world’s fourth-biggest petrochemical manufacturer bought a license last month to look for fuel around its refinery in Grangemouth, Scotland. That complements a deal by Ineos to import gas from the US, a step followed by other chemical companies in Europe such as Borealis and Saudi Basic Industries Corp. (SABIC). Scotland will next week vote on whether to stay in the UK.
That’s certainly an innovative solution to an increasing problem caused, in no small part, by the crippling cost of green taxes in Europe.
The article goes on to talk about the risk to Europe’s energy intensive industries unless cheaper supplies of fuel and power can be found quickly.