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LNG ships diverted to Milford Haven as energy firms cash in on record high prices

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LNG TANKERS, some of which were originally destined for Asia, are changing course mid-voyage to supply UK consumers, as gas prices here surge to new peaks.

Many thousands of households have seen energy prices rise after their supplier went bust.

Millions are set for a huge increase in prices in April when a new cap comes into force. In all 29 supplies have folded affecting four million consumers. About 15 million households saw their energy bills rise by 12% in October, because the energy price cap has risen. This sets the maximum price suppliers can charge domestic customers on a standard tariffs.

The UK is hit relatively hard hit because it is one of Europe’s biggest users of natural gas – 85% of homes use gas central heating, and it also generates a third of the country’s electricity. Storage capacity in the UK is lower than in some other European countries.

There has been a worldwide squeeze on gas and energy supplies. As a result, wholesale energy prices rose sharply and, in recent weeks, have hit their highest levels of 2021. Reasons include a cold winter in Europe last year put pressure on supplies and, as a result, stored gas supplies were low; A relatively windless summer meant it was difficult to replenish those supplies; and there’s been increased demand from Asia – especially China – for liquefied natural gas.

Because of this for much of the year buyers in China, Japan and South Korea have outbid Europeans for shipments of the super chilled fuel, used in power stations to generate electricity.

However, because storage is now full across the region, uncommitted cargoes from the Atlantic basin that were heading for Asia are being turned round by their owners and sent to gas terminals in Europe, incluiding Milford Haven so they can profit on soaring prices and demand.

Over the next few days five giant liquefied natural gas carrying ships will berth in Pembrokeshire.

The Artic Voyager, from Cove Point LNG, Maryland USA expected to arrive on December 30, heading for South Hook LNG. The Pearl LNG is expected on New Year’s Day at Dragon LNG – it comes from Sabine Pass LNG Terminal in Louisiana USA. Also on New Year’s Day the Bonito LNG is expected to arrive at Dragon, from the same American terminal. On January 4, the Aristidis I will arrive from Freeport LNG Terminal in Texas USA.

This week, European gas prices leapt 23% to a record £153 per megawatt hour as Russian gas flows on a key pipeline stopped.

“Europe’s gas market has now broken clear,” said Ciaran Roe, global director of LNG at Platts. Speaking to the Financial Times he said: “Every major destination market for LNG cargoes is below the major European gas hubs.”

Business

Huge new facility at Pembroke Power station approved

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A GREEN hydrogen fuel production facility by Pembroke Power Station has been approved by Pembrokeshire planners, despite a concern raised about the amount of water it will take from the county’s Llys y Fran reservoir.

An application by Pembroke RWE Generation UK plc for the construction of a green hydrogen production facility, with associated works including a water supply pipeline to the Pembroke Power Station and electrical supply connection to the National Grid Substation on land adjacent to Pembroke Power Station, was recommended for conditional approval at the November  meeting of the county council’s planning committee.

Green hydrogen is produced from water, in an electrolysing process using electricity obtained from renewable sources; the electrolyser site previously occupied by the power station’s sports and social club.

A report for planners stated: “The electrolyser is planned to be powered with ‘low carbon electricity supplied primarily via grid connected renewables’ and will create ‘green hydrogen’ for use in industrial processes. Water for the electrolyser will come from existing power station supplies.

“The pipeline corridor would supply hydrogen gas to the Valero Refinery. The pipeline corridor would follow the route of an existing natural gas pipeline. Most of the pipeline corridor would be underground, passing across farmland and a wooded area. It will emerge above ground within the Valero Refinery. The working width of the construction area for the pipeline is expected to be approximately 30m.”

Some of the final details are subject to potential change, members heard, but the maximum height of the flare stack would be 25m and the electrolyser building and compressor building would be up to 17m in height.

The report also quoted the applicant: “By bringing together technologies such as hydrogen production, carbon capture and storage, battery storage and floating offshore wind to the Pembroke area, RWE can help to decarbonise the energy sector in Wales for generations to come. RWE’s ambitions will build on Pembrokeshire’s local energy heritage, safeguarding existing jobs at the development site, while delivering a significant local economic investment and creating new jobs throughout construction and operation.”

Speaking at the November planning meeting, project development manager Zoe Harrison told members would make “a significant contribution to net zero,” the green fuel leading to approximately 90,000 tons less of Carbon Dioxide being produced a year, the equivalent of 18,000 cars being taken off the road.

Cllr Steve Alderman, who said he was in support of the proposal, raised the issue of the amount of water the facility would take from the Llys y Fran reservoir to produce two tons of hydrogen fuel per hour, members hearing nine kilos of water was needed for every kilo of hydrogen fuel produced by the electrolysing process.

Zoe Harrison said the water was available through an existing agreement with Welsh Water, and a suggestion by Cllr Alderman to look at desalinating seawater was not part of the current scheme but could potentially be looked at in the future.

Moving approval, Pembroke Dock councillor Brian Hall said: “I’m sure everybody does realise this is a very important project for Pembrokeshire full stop,” adding: “I can’t emphasise enough how the people in my area can’t wait for this development.”

Fellow Pembroke dock councillor Tony Wilcox also supported the proposal, saying of concerns about potential visual impacts: “To a certain extent, that horse has bolted, because it’s in the middle of a power station.”

Members unanimously supported delegated approval for the application.

The facility is expected to take 24 months to build, an earlier consultation on the scheme said, and could be built by early 2027.

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Why there will be regular flights from Wales to a little-known Chinese city

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CARDIFF Airport has launched a new flight route with thrice-weekly services to Ürümqi, an expanding city in northwestern China with a population of around four million. Though little known in Wales, Ürümqi has a complex history, highlighted in 2009 when it gained international attention due to ethnic tensions. Now, Cardiff and Ürümqi are linked as strategic cargo hubs, set to speed up deliveries and bolster Welsh businesses seeking export opportunities, including those in Pembrokeshire.

The new route, operated by European Cargo, offers a chance for Welsh exporters to reach China more swiftly. Speculatively, if fishermen in Milford Haven could ship Pembrokeshire crab to China while still fresh, it could open a lucrative market.

UK-based freighter operator European Cargo has chosen Cardiff International Airport as its latest base, launching the service to Ürümqi Diwopu International Airport with initial plans for three flights weekly and a possible fourth soon. The airline’s specialized A340-600 converted freighters, designed for high-capacity loads, will transport e-commerce and other cargo directly from Wales to China.

Ürümqi – The city has a bigger population than Wales but you probably never heard of it

Jason Holt, CEO of European Cargo, described the expansion as a natural progression: “As we continue to grow outward from Bournemouth, Wales offers a prime location for investment. Cardiff Airport’s 24-hour operations and excellent motorway access make it ideal for our logistics network.”

The move has garnered praise from Welsh trade groups. Logistics UK’s Policy Manager for Trade, Customs, and Borders, Josh Fenton, called the flights “fantastic news,” highlighting the route’s potential to boost trade links for Welsh businesses. “This service showcases Cardiff Airport’s potential as a freight hub, and we look forward to seeing more routes connecting Wales globally,” he said.

Cardiff Airport has been struggling post-Covid. Qatar has still not returned, but its now on the up (Image: File)

With Cardiff now serving as European Cargo’s second UK base, after Bournemouth, the airline’s Cardiff operations join routes to Chinese cities like Chengdu, Haikou, and Ürümqi. The airline’s A340 fleet, suited for high-volume loads with a 76-tonne payload capacity, is poised to meet the growing demand for e-commerce transport to and from China.

Cardiff Airport CEO Spencer Birns echoed the optimism surrounding the new route. “This investment reflects the high-quality facilities and committed teams we have here. Cardiff is well-positioned to support large-scale cargo operations,” he said.

Looking to the future, Fenton emphasized the need for continued governmental backing. “Logistics is central to Welsh economic growth. We urge the Welsh government to publish the Welsh Freight and Logistics Plan and appoint a dedicated minister for logistics and supply chain,” he stated.

With the addition of this route, Cardiff is set to play a significant role in bridging Wales and China, fostering global trade links essential in today’s interconnected economy.

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Original Factory Shop to close Haverfordwest branch in December

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THE ORIGINAL FACTORY SHOP in Haverfordwest has announced it will close its doors on December 14, 2024. This news has left many saddened, with heartfelt tributes pouring in to celebrate the store’s role in the community and the people who made it special.

In a recent social media post, the management of The Original Factory Shop shared their gratitude for the community’s support, stating: “We take this opportunity to thank all of the local community and our store colleagues for their support throughout our time here in Haverfordwest.” The announcement marks the end of an era for a store that has been part of the town’s retail landscape for many years.

Among those reflecting on the closure is Nigel Shinner, a former employee whose journey with The Original Factory Shop began in Haverfordwest. Nigel shared his experience on social media, reminiscing about his time with the store and how it became a meaningful part of his life and career:

“I know there are sadder things happening in the world today, but this makes me sad. This was my point of entry into The Original Factory Shop family. I joined as just a weekender, while I was raising my kids, but it wasn’t long before I became a supervisor and farmed out to help at other stores. I really stepped up a notch when my life took a turn, and I became Head Office staff and part of the new store merchandising team, often working ten-hour days, unloading wagons, building equipment, dressing stores, and training staff. That job took me far and wide, from Land’s End to John O’Groats, from east coast to west, and to many locations across the home nations.”

Local customers also expressed their sadness at the upcoming closure, with comments pouring in on social media. Long-time shopper Julie Parry wrote, “I will be so sad to see this lovely little shop going. Always such friendly, helpful staff. Good luck, ladies, in whatever work you do next.” Another customer, Lyndsey Gould, shared fond memories of shopping at the store, saying, “Awww, such a shame you’re closing. Will miss getting my balloons from you guys.”

The closure of The Original Factory Shop marks another loss for Haverfordwest’s local shopping scene, which has seen several changes in recent years. The community now prepares to say goodbye to a much-loved establishment, with the store welcoming customers for a final visit until December 14.

For those wishing to express their farewells, the store remains open for one last month, inviting the community to visit, reminisce, and say goodbye to the team that has been a part of their shopping experience for years.

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