UK Terminal Offers More LNG Capacity
UK LNG terminal operator Grain LNG said May 20 it launched a few days earlier the second phase of an on-going open season, during which the market is invited to bid for up to 300 GWh/d (7.2mn metric tons/yr) of redelivery capacity and 380,000 m³ of associated LNG storage, to be made available from mid-2025. Grain LNG is owned by gas and power transmission systems operator National Grid.
The capacity on offer is a combination of new build and existing capacity which comes out of contract in 2025. The expansion will increase the size of the Grain LNG terminal, on the Isle of Grain in Kent, to about 1.2mn m³.
Commercial manager Nicola Duffin said that demand for capacity was strong, despite the crash in prices caused by the Covid-19 virus. "The flexibility offered by Grain LNG’s large storage tanks, and the benefit of our location in southeast England, means our facility continues to be of interest to market participants. We are delighted therefore that we have received the required regulatory approvals to proceed to the next phase. Final and binding bids are required by June 15."
Grain LNG also offers reloads, trans shipments and a multi-bay facility for reloading road tankers, and ISO containers and has plans for a marine breakbulk facility. The Grain LNG terminal is the only terminal in the UK offering small-scale solutions to the market, although there are many across the Channel where marine bunkering and truck loading are offered..
Grain LNG said that "UK terminals have seen a considerable increase in utilisation recently as new global supplies have come online and the economics of moving LNG from the Atlantic to the Pacific basin have failed to stack up."