The UK’s National Grid reportedly wants to sell its Dynevor Arms LNG storage site in South Wales and will close half of a similar facility in northwest England next spring.
The move comes in light of developments at two new such sites, set to be operational this winter. It does not mean however, that the facility will cease to exist altogether as it is open to offers from parties who may be interested in investing.
The energy network operator will not need Dynevor Arms once two new LNG import terminals open in South Wales this winter. Meanwhile, the company plans to use just two of the storage tanks at Partington near Manchester from May next year.
National Grid hopes to complete the storage site sale in the first quarter of 2009.
A company spokesman could not comment on the value of the facility but the National Grid’s Director if UK LNG, Peter Boreham, commented, “All the changes to Britain’s gas infrastructure meant now was the right time to review the role of each of our sites.”
“The transformed infrastructure in South Wales means that Dynevor Arms is unlikely to perform the same role in the market going forward. While the facility does not now meet our business model, another owner could value it differently and so we are offering the site for sale.”
The company indicated it would continue to run its Glenmavis storage facility in Scotland and Avonmouth in southwest England as normal, because both are still needed to maintain grid pressure during incidents such as sudden changes in demand, offshore supply failures or faults on the onshore network.
National Grid said it planned to offer long-term capacity at these two sites from summer 2009, so that it can invest in keeping the sites running.