The South Hook LNG Terminal - already one of the largest in Europe – is in line for a further multi-million pound investment after the government of Qatar announced it will be utilising the Pembrokeshire site for expansion.

The demand for LNG has soared throughout 2022 as fuel prices skyrocketed following the Russian invasion of Ukraine.

As a result, the UK along with other European countries, has been scrambling for a deal securement with the world’s biggest LNG exporter at Qatar.

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Now, as international LNG imports have escalated by 25 per cent, Qatar has decided to upgrade the South Hook terminal to meet the shipment demands.

It is understood that ExxonMobil is also making significant investments to help increase the capacity at South Hook.

The Pembrokeshire LNG terminal serves as the final stage in a supply chain that celebrates some remarkable engineering and strong cultural alliances between the Arabian Gulf off the north coast of Qatar and the historic port of Milford Haven.

The world’s largest specially designed LNG carriers take around 18 days to transport up to 266,000 cubic metres of LNG to the Pembrokeshire terminal, passing through the Suez Canal, across the Mediterranean and the Atlantic.

When the LNG carriers arrive at South Hook LNG terminal, their cargo is discharged into huge, specially designed tanks.

The station’s processing capacity is currently 15.6 million tonnes of gas per year which, according to the proprietors, equates to nearly 20 per cent of the UK’s daily natural gas needs.

The other major player in the global LNG industry, along with Qatar, is the United States.

The development of the US’s $10 billion new Golden Pass terminal, scheduled to open in 2024 and anticipated to export to the UK, is being carried out in tandem with the investment in South Hook LNG.

Approximately 17 per cent of the UK’s gas demand was met internally in 2021, with its significance expected to increase as output from the ageing North Sea declines.