Following the successful completion of Grain Phase 2 on time and on budget in December 2008, and with Grain Phase 3 on target for winter 2010/11, National Grid is exploring options for a fourth phase of capacity at its LNG importation terminal located on the River Medway, close to London and the centre of UK gas demand.
As part of assessing the feasibility, National Grid is seeking to identify the level of market interest through an open season process where LNG market participants will be able to bid for the right to berth LNG carriers and unload LNG into the facility for its temporary storage, prior to regasification and delivery of gas into the UK’s National Transmission System.
National Grid is considering a range of options with the delivery timescale dependent upon the scale of additional LNG importation capacity ultimately required by customers.
Peter Boreham, National Grid’s Director of UK LNG, said, “National Grid has led the way for Britain in the field of LNG importation.
This was the first UK LNG importation terminal of the modern era, and will have the capacity to meet 20% of Britain’s gas demand by winter 2012.
“Our investment in the existing three phases is near £1 billion and if there is market appetite for more capacity then we’ll look to invest further and develop Grain phase 4.”
This is the fourth open season process to be undertaken at the Grain LNG terminal by National Grid. BP/Sonatrach acquired the first phase of 3.3 million tonnes of LNG per annum in October 2003; Sonatrach, GDF-Suez and Centrica acquired the second phase of 6.5 million tonnes LNG per annum in March 2005 and E.ON, Iberdrola and Centrica acquired the third phase of 5 million tonnes LNG per annum in May 2007.
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Source: National Grid, August 31, 2010