FREQUENTLY ASKED QUESTIONS (FAQS)

The Teesside Flexible Regas Port is a Liquified Natural Gas (LNG) import terminal being developed in Teesport near the town of Stockton-on-Tees in the northeast of England. This project will provide a market-reactive access point for LNG supplies to enhance the UK’s energy security of supply.

The Teesside Flexible Regas Port will offer LNG regasification capacity and can deliver up to 6 million tons per annum of LNG (up to approximately 248.5 GWh per day or 22.7 million cubic meters per day) into the UK National Transmission System. This amount of natural gas has the potential to power nearly 4 million homes per year. During periods of high demand, LNG will be brought in from around the world to the terminal, to relieve market shortfalls and provide stability to the UK energy grid.

The Teesside Flexible Regas Port will be developed, constructed and operated by the dedicated project company Teesside Flexible Regas Port Limited, which is managed by WaveCrest Energy.

WaveCrest Energy is a global LNG company that was formed as a wholly owned subsidiary of Macquarie Capital (a division of Macquarie Group Limited) to develop, construct, own, and operate LNG regasification, power, and related downstream infrastructure assets. WaveCrest delivers end-to-end project solutions, leveraging its significant development and technical experience and Macquarie Capital’s structuring and financing capabilities, to successfully execute projects worldwide.

WaveCrest Energy’s team has the industry’s greatest concentration expertise for LNG importation projects. The combined experience of the WaveCrest team spans 16 unique LNG import terminal projects around the world since 2005.

Simply put, liquefied natural gas (LNG) is natural gas that has been reduced to a liquid state by cooling it to -161 °C. In its liquid state, natural gas takes up a volume that is 600 times smaller than when it is in a gaseous stage. As a result, it becomes much more efficient to ship natural gas as LNG over long distances. LNG has been part of the UK’s energy mix dating back to one of the world’s first LNG import terminals in Canvey Island in 1961.

LNG produces 40% fewer carbon dioxide (CO2) emissions than coal and 30% fewer than oil, which makes it the cleanest of the fossil fuels. It does not emit soot, dust or particulates and produces insignificant amounts of sulphur dioxide, mercury and other compounds considered harmful to the earth’s atmosphere.

To use LNG as a fuel for power generation, heating, cooking, and other purposes, the LNG must be converted back to a gaseous state. This is done through a process called regasification that essentially warms the LNG causing it to change from its liquid form back to gaseous natural gas. This is done under specific pressure and temperature conditions so the resultant natural gas can be injected into the UK gas distribution network.

Recent global energy disruptions have shifted energy dynamics causing a re-evaluation of energy supplies and security.  Continued geopolitical instability has focused countries on prioritising their energy security of supply to protect against energy shortages. As a result, the Teesside Flexible Regas Port is being developed to mitigate potential supply shocks, shortages, or other complications in the UK.

While renewable energy sources such as wind and solar are becoming a more significant part of the UK energy infrastructure, natural gas will continue play a critical role during this transition to a lower carbon future. Specifically, natural gas can provide support for periods high demand and adverse weather conditions, and when renewables are not able to produce sufficient power.

The Teesside Flexible Regas Port provides a new portal for natural gas supplies to enter the UK gas market. This means that when the UK faces potential energy shortfalls, LNG suppliers can bring incremental LNG cargos to meet consumer needs. This additional gas in the network will help meet the increased demand in the peak periods and help mitigate potential price fluctuations for domestic users.

The Teesside Flexible Regas Port utilises standard equipment already in use at existing UK LNG import terminals. This includes the following primary components:

• A marine jetty for mooring LNG carriers delivering to the project;
• Marine loading arms to connect to LNG carriers and allow them to deliver LNG;
• Cryogenic LNG pumps to pressurise the LNG to required pipeline network pressure;
• Vaporisers used to heat the LNG and convert it back to gaseous natural gas;
• Onshore LNG storage tanks for buffer storage; and,
• A natural gas pipeline connecting the project to the National Transmission System.

LNG will be brought in via LNG carriers that will moor at the marine jetty. An LNG carrier will be connected to the terminal via a marine loading arm which will allow it to deliver LNG onshore for vaporization and delivery into the pipeline network. The LNG carrier will stay moored to the jetty for several days while it offloads its cargo of LNG.

Natural gas from the Teesside Flexible Regas Port can be blended with existing natural gas being delivered from the North Sea. In addition, the project can provide nitrogen injection to any regasified LNG. Both blending and nitrogen injection provide conditioning to the vaporized LNG. As a result, the Teesside Flexible Regas Port can accept delivery from a broad range of global LNG sources while still complying with Natural Transmission System specifications for natural gas quality.

Multiple locations across the UK were evaluated, and Teesport presents itself as the best place for the project. Teesport has a long history of energy and petrochemical projects and is undertaking efforts in carbon capture and storage, biogas and other new areas of development making it a centre for energy innovation. Specific benefits of this location include the following:

• Teesport has deep-water access within the port and has with appropriate infrastructure to support the necessary marine operations for LNG carrier mooring and unmooring
• The project location is close to multiple potential and existing National Transmission System pipeline connection points with sufficient capacity to receive the regasified LNG produced
• A location in northern England provides physical support and stability to the National Gas grid as existing LNG supplies come into the south
• The ability to blend with existing North Sea gas flows allows the project to accommodate a wider range of LNG supplies and provide greater supply security as a result

The Teesside Flexible Regas Port is in advanced stages of engineering and design and is supported by a multi–disciplinary technical, operational, financial, and regulatory team. The project also has many local industry partners who are assisting in the development of and operational planning for this project.

Current projected timeline for TFRP:

The project will be considered an ‘EIA development’ and therefore an Environmental Impact Assessment (EIA) will be undertaken, and an Environmental Statement (ES) will be prepared. Both the EIA and ES will include any likely significant environmental effects as a result of this project proposal.

The EIA will consider the effects that may occur during the construction and operation of the project and will be used as part of the design process to minimise environmental effects through design where possible. The EIA work is being undertaken following the approaches and methods agreed with various stakeholders, including the Environment Agency, Natural England, and the administrative area of Stockton-on-Tees Borough Council. As the detailed design of the Teesside Flexible Regas Port has not yet been finalised, the EIA is being based on worst case assumptions to ensure that it is robust.

The EIA will consider the potential effects of the project on several environmental topic areas, including air quality, noise, ecology, flood risk and climate. A Preliminary Environmental Information (PEI) Report will be prepared detailing the work done to date, and the conclusions identified for each environmental topic. This will form one of the key documents issued for comment as part of the project’s statutory consultation process.

The project will adhere to a stringent operating programme to ensure full compliance with UK and international standards. The design of the TFRP will employ state-of-the art control, monitoring, and gas detection systems to minimise the potential for environmental impacts.

At this early stage of the Teesside Flexible Regas Port, a contractor has yet to be appointed for construction works. While the appointed contractor will be responsible for sourcing labour, the project’s intention is to develop an Employment, Skills, and Training Plan to create opportunities for local residents to learn new skills and provide training opportunities during the construction phase of the project.

We will be initiating the consultation process by providing information regarding the project to stakeholders, residents and local communities in May 2024 and seeking views on the proposal. This will be done using the following:

• Press and media releases
• Newspaper notices and posters
• Project website: www.teesside-frp.co.uk
• Public exhibitions

As the Teesside Flexible Regas Port will have a flow rate of greater than 4.5 million standard cubic metres per day, the project is classified as a Nationally Significant Infrastructure Project (NSIP) under the Planning Act 2008. This means that one of the main types of permission we will be seeking to obtain is a Development Consent Order (DCO) from the Secretary of State (SoS) for Energy Security and Net Zero. We are planning to submit our application for a DCO to the SoS in July 2024.

The DCO process helps to make the decision-making process for large infrastructure projects more efficient and ensures that communities and stakeholders are provided opportunities to make their views on proposals known.

We will need to submit our application for a DCO to the Planning Inspectorate, who are responsible for accepting and examining DCO applications on behalf of the SoS. There are then set stages that will need to be followed. You can find more information on the DCO process online at: infrastructure.planninginspectorate.gov.uk

The Secretary of State for Energy Security and Net Zero will make the final decision on whether to grant permission for the Teesside Flexible Regas Port. The decision will be made after the examination of the application for a DCO, following which the Planning Inspectorate will provide a report and recommendation to the Secretary of State to help inform their decision.

Your views will help us shape our application for a DCO. Consultation is a key part of the DCO process, and it is a statutory requirement of the Planning Act 2008 to consult people living within the vicinity of the project and to have regard to their views in preparing the application to be submitted to the Secretary of State (SoS) for Energy Security and Net Zero. The application submitted to the SoS must be accompanied by a Consultation Report detailing what has been done to consult the local community (and other stakeholders and interested persons) and how peoples’ views have been considered. It is anticipated that statutory consultation will be undertaken in Spring 2024.