Third Party Access
Guidance for Prospective Additional Users
This Guidance Document and form of Confidentiality Agreement have been produced to assist those parties seeking to become an Additional User of the South Hook LNG Terminal and obtain secondary Terminal capacity at the Terminal in Milford Haven, West Wales.
The Guidance Document describes:
- The facilities available at the Terminal
- The nature of the secondary terminal capacity a party may access
- The different methods of accessing such capacity.
It also sets out the process by which a party may become an Additional User at the Terminal and a step-by-step guide of how to participate in a UIOLI capacity auction, should an Additional User decide to access secondary Terminal Capacity in this way. The rules for access and use of the Terminal are contained in the Terminal Access Code (TAC).
The Terminal is operated by South Hook LNG Terminal Company Ltd (Terminal Operator).
South Hook Gas Company Ltd. (SHG or Base User), has acquired all firm Primary Capacity rights at the Terminal (Terminal Capacity).
Additional Users can purchase secondary Terminal Capacity from SHG as Base User, and hold such capacity, in the form of a South Hook Bundle (or SHB). Once a SHB has been created and purchased by an Additional User, it can be sold to other Additional Users.
A SHB comprises a single berthing slot, firm redelivery capacity and LNG storage space for a defined period of days (SHB Period). These parameters are all as agreed by the Base User when making the original transfer (except in the case of an auction). The Additional User must nominate redelivery of all the LNG unloaded within the SHB Period.
There are a number of ways by which an Additional User can access secondary Terminal Capacity:
- By agreeing to purchase a SHB with the Base User
- By participation in an auction conducted by the Terminal Operator (as and when secondary Terminal Capacity is available in defined timescales)
- By agreeing SHB transfers with other Additional Users
The Base User can also offer LNG processing services to others for periods when it is not using all the Terminal Capacity for its own business needs. These arrangements would not require the interested LNG owner to become an Additional User at the Terminal, and are not covered in this guide. Interested parties should approach SHG directly about any such arrangement.