Milford Haven Port

Source: Supply Chain Digital

Date :17/03/2008 14:22:40

As the Port of Milford Haven celebrates its 50th anniversary, it is seeing expansion on all fronts. Exec speaks to Ted Sangster, the Port’s CEO about the future

Written by Jane Fisher and produced by Paul Radbourne

Milford Haven is set to play an even greater role as one of the country’s strategic energy ports in future. Later this year, the completion of two Liquefied Natural Gas (LNG) facilities will mean that a potential 30 percent of the UK’s gas requirements will be processed through the port.

With 20 percent of the country’s petrol and diesel provisions already being handled on the waterway, Milford Haven is soon to become the new energy capital of the UK, says chief executive of the Milford Haven Port Authority (MHPA), Ted Sangster.

“As the terminals build up their operation over the next two to three years, we should see an increase in our revenue and profits,” he says. “But the catalytic effect of having these LNG terminals here in South Wales will be the boost it gives the local economy through jobs and all the spin-off and supply services that are created.”

MHPA was established by an Act of Parliament in 1958. Today it is one of more than 100 trust ports in the UK, required to comply with governmental standards, and to make a profit. In 2007 MHPA saw an annual turnover of £18 million, an increase of £2 million on 2006.

“We are growing steadily,” said Mr Sangster, who has been CEO since 1998, coming to the organisation from his post as director general of the British International Freight Association and previously having spent 20 years in the ferry industry, with companies such as Caledonian MacBrayne, Sealink and Stena.

The first oil refineries opened in the town in the 1960s and by the 1970s Milford Haven had become the leading oil port in Britain and the second largest in Europe.

Today it supports three oil terminals - two refineries and one storage tank. Between them and the ferries using the port, these three terminals bring 51 million tonnes of shipping business into the port every year.

Delivering to the UK

More than 18 million homes in the UK currently use natural gas and a high proportion of UK electric power is generated using natural gas. At a time when the UK’s domestic production from the North Sea is in decline, the demand for energy and natural gas is increasing and the new LNG terminals at Milford Haven will ease supply.

The increase in shipping from the new LNG terminals will be slow and steady, stressed Mr Sangster. The smaller of the two currently under construction is Dragon. This is a partnership between BG, Petronas, the Malaysian oil and gas company, and Petroplus, the Dutch refiner and wholesaler. It will have two tanks and will have the capacity to bring in about 6.8 million tonnes of gas every year as cargo.

LNG will be delivered to the new terminal by a fleet of vessels, which will berth at the refurbished jetty. The gas will then be kept in storage tanks with a capacity of approximately 160,000m³. The LNG tanks are of a full-containment design where two tanks are employed; an inner tank which contains the stored liquid, and an outer tank which provides security in case of leakage.

From there, the liquefied gas will be re-gasified, pressurised and sent out to consumers via a gas pipeline connecting with the National Transmission System (NTS). The start-up capacity of the new terminal will provide up to seven percent of natural gas deliveries in the UK.

The other terminal is South Hook, a partnership between Qatar Petroleum and Exxon Mobil (and more recently Total), which will have a capacity of 15 million tonnes. On completion this year, South Hook will have the capacity to receive enough gas to provide the UK with around 20 percent of its natural gas requirements. The construction of the receiving terminal, again allowing the import and re-gasification of LNG, is one of the largest hydrocarbon projects of its kind in Europe.

“If both terminals are working at full capacity, we expect to see an extra vessel a day at the port – and these are large ships,” said Mr Sangster.

Ongoing development

MHPA’s Engineering Division is also becoming more involved in alternative energy, continues Mr Sangster. “The division is exploring possibilities for different forms of electricity supply, including tidal and wave current technologies,” he explained.

Milford Haven is also seeing expansion in its ferry business. Irish Ferries, who use the port, are seeing an expansion in both passenger services and freight. Last year the freight business grew by eight percent.

“Milford Docks is also seeing an ongoing programme of development,” said Mr Sangster. “Here we have a ship repair business and full dry docking facilities. This is also the largest fishing port in Wales, with 4,500 tonnes now brought in every year from the offshore fleet.”

Facilities include cranes and fork lift trucks, ice and cold storage (up to eight tonnes per day) and bunkering on-site companies.

MHPA also operates the 340 berth Marina at Milford Haven. This is situated in a non-tidal basin on the north shore of the port and provides shelter and access to leisure boating in the UK.

Milford Marina has undergone a sustained development programme as well, which has transformed both its water-based facilities, and on-shore attractions. This investment was recognised through the Yacht Harbour Association’s independent assessment scheme when the Marina was awarded Four Gold Anchors.

“All this development has an effect on Pembrokeshire,” said Mr Sangster. “This is a key part of our aim, to focus on the local economy and to see it improve as our business grows.”

Click here to view the corporate brochure on Milford Haven Port Authority