Crown LNG, a Norwegian infrastructure company, is planning to build a new LNG import terminal in the UK, reported Bloomberg, citing CEO Swapan Kataria.
The new facility is aimed at reducing the country's reliance on European pipeline supplies amid growing demand for natural gas.
Crown LNG’s proposed facility in Grangemouth, Scotland, is expected to have a minimum capacity of 2mtpa and is due to become operational by early 2027.
In an interview, Kataria highlighted the importance of the move, stating: “It is a bold move, but the UK is too dependent on interconnectors. If they stop working, what happens next?”
As North Sea gas production declines, the UK's reliance on gas imports, including those from Europe, has been increasing.
This dependency is further exacerbated during winter's peak demand periods.
The urgent need for alternative energy sources has been heightened following Russia's invasion of Ukraine in 2022, which led to a rapid construction of new LNG terminals across Europe.
Crown LNG's Scotland facility, initially planned to be linked with a power plant, is now seen as viable on its own due to the heightened demand for energy independence.
The UK currently operates two LNG terminals in Wales and one east of London.
Crown LNG's proposed floating terminal is expected to be more cost-effective and quicker to construct than traditional onshore facilities, with an estimated cost of around £473m ($603.47m).
Kataria revealed that discussions with potential customers in the local industrial and power sectors are under way, and there is interest from US export facility developers seeking to tap into the European market.
The fluctuating generation of renewable energy in Scotland further strengthens the case for the new terminal.
Crown LNG is embarking on the preliminary application process, which will be followed by an environmental assessment and the search for a floating storage and regasification unit.
Crown LNG is aiming for a final investment decision on the project by late 2024.
Late last month, Crown LNG selected IKM Engineering & Environmental Consultants for the design and engineering of its upcoming LNG terminal.
