29 November 2022

Commercial Advantages

The Port Meridian deepwater port offers low cost and flexible access to the UK gas market. Port Meridian allows prospective capacity holders to offload standard vessels via ship-to-ship transfer (STS) offloading into a Floating Storage and Regasification Unit (FSRU) moored on site. This will be equipped to regasify the LNG and transport it directly into the UK market.

With all major approvals and consents in place for Port Meridian, the project has entered its commercialisation phase. In this respect, Port Meridian Energy Limited,  together with its vessel operator partner Höegh LNG, initiated an extended marketing campaign towards interested parties for long term regasification capacity in Port Meridian. Once approval for the commercial terms has been granted by OFGEM,  Final Investment Decision (FID) to construct the Port and pipeline facilities is expected by mid-2017 with first gas from Q4 2019.

A major advantage of the project is its location. The gas market entry point to the NTS at Barrow-in-Furness in North West England is at present under utilised, so the cost of entry capacity is very competitive compared to other UK terminals.

In addition, the competitive cost structure of Port Meridian, compared to UK onshore terminals, would allow regasification capacity holders at Port Meridian a commercial advantage in terms of attracting LNG and selling natural gas into the UK market.

The number of regasification capacity holders at Port Meridian is expected to be low, which would allow for smoother operation and more commercial flexibility, which in turn will help maximize utilisation of regasification capacity. Since the FSRU is expected to be available during periods of highest seasonal demand (winter or summer), Port Meridian represents a significant reserve of LNG in storage to satisfy fluctuations in market that normally occur at those times.

Should the commercialisation phase necessitate, nitrogen blending capabilities will be included in the onshore facilities of Port Meridian. This increases the number of potential sources of LNG produced in the global market that can be delivered, thus providing a significant degree of supply diversity to the market.