UK Mulls Bacton Terminal Regeneration

UK upstream regulator Oil & Gas Authority (OGA) is considering the creation of an energy hub including blue hydrogen creation on the Norfolk coast at the site of the major gas terminal at Bacton. It has hired development company Progressive Energy to conduct an in-depth feasibility study, it said December 3.

Bacton is already home to a complex of five gas terminals including two export/import pipelines to the continent, and is in a large wind power growth area, as well having the potential to produce hydrocarbons into the 2040s. Being unpredictable, wind power needs dispatchable fuel to back it up in the power generation mix.

Progressive Energy will examine several existing ideas within the oil and gas and renewables sectors, to assess whether an energy hub at Bacton is viable and set out options that might be explored further by any potential industry consortium.

OGA Southern North Sea area head Alistair Macfarlane said: "This is an exciting project that could bring real benefits in terms of the twin goals of maximising economic recovery and supporting the drive to net zero. The OGA-led project will hopefully stimulate energy transition activity at a hub considered to be a leading potential site and, at the same time, bring together organisations interested in creating an exciting future for Bacton."

Progressive Energy project director David Parkin said the company was "keen to use our skills and experience from developing the HyNet carbon cluster in the northwest to bring the huge benefits of a decarbonised energy hub development to East Anglia.”

National Grid, the UK transmission system operator (TSO), said in its annual gas network statement late November that it was considering various options for Bacton. The TSO is in negotiations with the economic regulator Ofgem over its next price control, dubbed RIIO-2. It will run from 2021 and its purpose is to limit the TSO's spending on infrastructure by regulating its return on investment.

National Grid says: "In RIIO-2 we will be assessing the long-term options for the Bacton Terminal, and whether a continuation of our asset health approach or a terminal redevelopment is the most beneficial approach. At this early stage of development, a terminal redevelopment is the lead option. While this is ongoing, we will also carry out “least regrets” asset health works to maintain the safety and reliability of the current assets."