South Hook Gas was established in 2004 in London as a joint venture between Qatar Petroleum (70 per cent) and ExxonMobil (30 per cent). The company is a key player in the energy sector and can provide around 20% of the UK’s natural gas requirements.
At a time when supplies of gas from the North Sea are declining, the company has improved energy security by enabling additional gas to reach the UK via the South Hook LNG Terminal in Wales. South Hook Gas is also helping to improve diversity in the UK gas market by signing agreements with companies such as ConocoPhillips, EGL and Total to enable them to bring in additional cargoes of LNG via the South Hook Terminal.
The shareholders of South Hook Gas and the terminal operating company, South Hook LNG, have made a £1bn investment and remain committed to the UK for the long term. South Hook Gas has supplied gas into the UK market every day since commencing commercial operations in 2009 and every day, we send out on average enough gas to meet the daily needs of over eight million households – that’s around a third of all UK households.
Looking ahead, the UK Government is committed to reducing greenhouse gas emissions by 80% by 2050 compared with 1990 levels. With 50% lower CO2 emissions than coal, natural gas has an important role to play in helping the Government reach its objectives as it provides the UK with reliable energy supplies in support of potentially intermittent sources of energy such as wind and solar power.
In 2010, South Hook Gas imported 8.3million tonnes of LNG which delivered 125 Terawatt hours (TWh) of gas into the UK gas grid. During the year, 34% of total UK gas supply was used in power generation and if you applied the same proportion of UK gas supply for power generation to South Hook Gas’ send-out rate, then around 44TWh of the gas we provided would have been supplied to the power sector. Given the difference in CO2 emission rates between new gas and ageing coal-fired power stations, if this gas was used to replace coal generation, this would reduce UK CO2 emissions by 10 million tonnes. This is 6.9% of the total emissions from UK power stations, or 2.2% of the UK total emissions.
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