Sembcorp secure local gas suppliers

Feb 24 2010 by Peter McCusker, The Journal

THE new power plant at Wilton chemical complex on Teesside is to be powered with locally-produced gas after a new deal between its operators and a natural gas company.

Sembcorp, the power plant’s owners, are also working on the creation of a possible gas storage facility in the gas field once its reserves have been exhausted.

Sembcorp’s £36m Gas Turbine/Heat Recovery Steam Generator came fully on stream last year and its power generation capabilities are used to fuel many of the site’s chemical plants including the new Ensus bioethanol plant.

It had been drawing on gas from the national transmission system, but it has now struck a deal with Hampshire-based Egdon Resources, developers of the Kirkleatham gas field which neighbours the Wilton complex.

Work will shortly begin on the infrastructure to transfer the gas to the power plant with the first supplies set for delivery in the last quarter of this year.

Bob Stonehouse, commercial manager at Semcorp, which employs 400 people at the Wilton site, said: “This is an important milestone for Sembcorp as it helps secure our essential gas suppliers for the future.

“Down the line it also opens up the possibility of creating a gas storage facility in the empty gas field once its supplies have been exhausted.”

He went on to say that the creation of gas storage facilities in and around Teesside are being actively pursued.

They will help guarantee future gas supplies at a time when UK reserves are declining and allow gas to be purchased for winter use at lower summer prices.

The Wilton gas turbine is capable of generating 40mw of electricity – enough to power about 40,000 homes – and the steam generator is capable of supplying up to 162 tonnes-per-hour of steam to on-site customers.

The combined heat and power project sustained around 85 jobs during its construction period and brings to more than £150m the amount spent by Sembcorp on new and existing assets at the Wilton site in the last five years.