Dragon LNG, Milford Haven, United Kingdom

www.dragonlng.co.uk

On 25 August 2009 the Dragon LNG terminal in Milford Haven, Wales, has successfully completed its commissioning phase and commenced commercial operation. The LNG import, storage and regasification terminal has  a start-up capacity of 6 billion cubic meters per annum (bcma).

The members of the 4Gas management team began developing the concept of an LNG import facility at Milford Haven in 1998, at which time the LNG activities formed a division of Petroplus International. Milford Haven is one of Europe’s finest natural harbours and was already home to four oil refineries including the Gulf Refinery, which was acquired by Petroplus. This site proved ideal for use as an LNG import terminal and Dragon LNG was established as a 100% subsidiary of Petroplus.

Dragon LNG received its planning approvals in 2003 for the construction and operation of an LNG terminal comprising three storage tanks, each with a capacity of 160,000 cbm.

In 2003 two customers (Affiliates of BG Group and Petronas) committed to all of the proposed 6 bcma capacity in equal proportions and simultaneously acquired equity in the project company, Dragon LNG, which met Petroplus’ then established strategy of focusing on refining and marketing of oil products.

4Gas is a founding shareholder and retains 20 percent of the shares. Other shareholders are BG Group (50%) and Petronas (30%), who are also customers to the terminal and have contracted all of the available capacity.

Construction of the facility began in 2004 and the facility received its first shipment of LNG from MS Methane Lydon Volney on 14 July 2009. The cargo of 145,000 cubic metres of LNG from Atlantic LNG in Trinidad was being used to commission the new terminal. After two more commissioning cargoes the terminal commenced commercial operation in August 2009. The LNG Terminal has been designated as an economic key point. This designation is determined unilaterally by the UK governmental bodies and stems from the fact that the Dragon LNG import terminal is expected to play an important role in the UK gas supply. The start-up capacity of the terminal will provide up to 5% of natural gas deliveries in the UK and it is expected that the terminal will expand over time.

The LNG Terminal has been designated as an economic key point. This designation is determined unilaterally by the UK governmental bodies and stems from the fact that the Dragon LNG import terminal is expected to play an important role in the UK gas supply. The start-up capacity of the terminal will provide up to 5% of natural gas deliveries in the UK and it is expected that the terminal will expand over time.