National Grid signs 25-year deal for Grain LNG terminal

Grain LNG currently has the capacity to store and deliver enough gas to meet at least 25% of the UK’s demand

National Grid has signed a 25-year contract with Qatar Terminal Limited (QTL) to provide storage and redelivery capacity at its Grain Liquefied Natural Gas (LNG) terminal.

Grain LNG, located on the Isle of Grain in Kent, currently has the capacity to store and deliver enough gas to meet at least 25% of the UK’s demand.

It is the largest terminal in Europe and the eighth largest in the world by tank capacity, with a site that spans more than 600 acres in total.

The agreement marks the conclusion of Grain LNG’s competitive ‘Open Season’ process, which kicked off in November 2019.

National Grid said the UK has recently benefitted from a rise in LNG imports, which have contributed to lower wholesale gas prices by increasing ‘gas-on-gas’ competition.

Jon Butterworth, Managing Director of National Grid Ventures added: “Today is an important day for UK gas security, for Grain LNG and for the community around the Isle of Grain. LNG imports play a critical role in making sure the UK has the gas it needs, when it needs it.

“This agreement ensures that Grain will continue to offer the UK a flexible and reliable supply of gas to complement the growth of intermittent renewable generation. It also secures the future of a facility that is a significant contributor to the economy on the Isle of Grain. I look forward to working with QTL in the coming years and to continuing to operate a world-class asset that market participants and UK consumers can rely on.”

If you enjoyed this story you can sign up to our weekly email for Energy Live News – and if you’re interested in hearing more about the journey to net zero by 2050, you can also sign up to the future Net Zero newsletter. 

Latest Podcast