Liquefied natural gas (LNG) throughput volumes in the UK’s Port of Milford Haven, home of the South Hook and the Dragon LNG terminal, dropped 26 percent in 2016 and the trend is continuing into this year.
LNG volumes at the Port of Milford Haven, the largest port in Wales, were at 6,516,361 tonnes last year.
“South Hook LNG volumes were down significantly in 2016 and are expected to be lower again in 2017,” Alec Don, Chief executive of the Port of Milford Haven, said in the Port’s annual report.
The Port recorded a profit before tax of £5.6 million ($7.25m) and a turnover of £25.3 million in 2016. Cargo throughput was slightly lower than the previous year at 34.9 million tonnes.
According to Don, the Port is facing some “substantial challenges” this year with LNG volumes being “minimal” in the year so far.
“It is simply the fact that other consumers are prepared to pay higher prices than the UK market gas providers, for example customers in well established markets in the Far East, such as Korea and China, as well as the growing markets in South America, the Middle East and Asia,” he said.
“This is not an effect of Brexit, nor low oil prices, but it is due to the balance of supply and demand in the gas wholesale markets, not only in the UK, but across the globe,” Don added.
LNG World News Staff