Cookies on the ICIS website

close

Our website uses cookies, which are small text files that are widely used in order to make websites work more effectively. To continue using our website and consent to the use of cookies, click away from this box or click 'Close'

Find out about our cookies and how to change them

British Ofgem set to review Avonmouth LNG storage prices

26 Sep 2012 14:23:06 | esgm

ICIS_00092436.jpg

British energy regulator Ofgem will review the regulated prices for services provided by the Avonmouth short-range LNG storage facility, southwest England, it said on Tuesday, which should see the site operate until 2018.

The special licence condition "C3 prices" is being reviewed as National Grid LNG and Scotia Gas Networks have both stated they wish to continue using the Avonmouth facility beyond May 2013.

The facility, owned by National Grid LNG, supplies LNG to Scotia Gas Networks and supplies operating margins services to National Grid Gas.

"The current C3 prices are due to expire on 30 April 2013. In order to have determined the applicable C3 prices for the next operating margins exercise, we need to commence the review process now," Ofgem said.

Last reviewed in 2011 - and originally intended for the Partington, Glenmavis and Avonmouth facilities - the C3 prices were only retained for Partington and Avonmouth, as operational problems developed at Glenmavis during the review process.

Subsequently, in a time of great uncertainty for short-range storage facilities, Partington and Glenmavis were confirmed closed in June this year.

Avonmouth is the newest of the three sites, and its outlook is positive, with the facility expected to be used until at least April 2018, when the new price review is set to expire. Ofgem intends to produce an initial proposal in November this year, and requires any industry input regarding it to be sent by 23 October 2012. JCE

Other Options