Flogas signs deal to fill Avonmouth void
Liquid natural gas provider Flogas Britain has signed a first of its kind five-year deal with gas distribution company SGN to supply LNG to an independent grid system in Scotland.
10th May 2016 by Networks
From the start of this month Flogas will be supplying 10,000 tonnes of LNG a year to the system which is off the national gas grid, and services the towns of Oban, Cambeltown, Thurso and Wick.
The independent grid was previously supplied from the recently decommissioned Avonmouth LNG storage facility.
Instead Flogas will supply the grid through the Isle of Grain facility which feeds directly into the SGN pipeline.
SGN’s regulatory finance manager Joel Martin said: “With Avonmouth closing later this month, we had to find an alternative solution for our customers that are connected to the LNG-fed Scottish Independent Undertakings.”
“Following a competitive tender, it was Flogas’ pricing, infrastructure and professionalism that led us to choose them for our supply. They have an extremely well-developed LNG network, are market leaders, and we trust them completely to provide us with an uninterrupted supply of LNG at a competitive price.”
Flogas head of sales Rob McCord, said: “We’re delighted to be working with SGN. The deal will see two large, successful companies coming together to fill the gap created by the Avonmouth closure.”
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