A plan to build a new £70 million liquefied natural gas (LNG) bulk container at Rosyth to provide fuel to Scots industrial customers not served by the existing natural gas grid has been announced.
More than 150 new jobs will be created if the plan by Flogas Britain, the LNG provider, and Norwegian gas transport specialist provider Stolt-Nielsen provider goes ahead.
Liquefied natural gas would be shipped directly to Rosyth, instead of presently being trucked more than 400 miles by road from Kent to Fife. The LNG is sourced from Australia, north America and North East Africa.
LNG is produced by liquefying natural gas to significantly reduce its volume, so that it can be more efficiently transported.
However, the costs associated with the long distance LNG transport are high, forcing many off-grid businesses to use oil to power their industrial processes, or pay a premium for gas.
With a target completion date set for 2019, the bulk LNG solution will deliver LNG more cost effectively, making it cheaper and enabling users to switch to the more environmentally friendly fuel, thus helping reduce carbon emissions in line with the Scottish Government’s Low Carbon Economic Strategy.
The proposed small-scale LNG carriers will have a capacity of 7,500 m3 and the small-scale LNG terminal in the Port of Rosyth will have a capacity of 10,000-15,000 m3 of LNG.
For the next phase of the project, a leading engineering firm has been engaged to support the preliminary engineering and permitting of the small-scale LNG terminal at the Port of Rosyth.
Once permits are obtained, construction of the facility can begin on the site, which will generate over 100 local jobs during the 18-month construction phase, and 50 more following completion.
Rob McCord, Flogas’ Head of Sales, said: “This unique project is the beginning of Scotland’s LNG future and a chance to establish Scotland as an even greener nation.
“It will encourage the development of a natural gas infrastructure in Scotland’s remote regions and attract substantial investments from leading industrial groups.
“Flogas already supplies gas to many businesses and housing estates in Scotland, and the interest we have from potential new customers is huge. The demand is certainly there. We now need to work with the Scottish Government and our other stakeholders to bring the project to life.”