The UK National Grid’s Grain LNG, Europe’s largest LNG import terminal, and Qatar Petroleum subsidiary Qatar Terminal Limited (QTL) have signed a 25-year agreement for storage and redelivery capacity at Grain LNG from mid-2025.
Grain LNG covers a site of more than 240 ha on the Isle of Grain in Kent, UK, and has 1 million m3 of tank storage capacity and a throughput capability of 15 million tpa. It is able to meet at least a quarter of UK’s gas needs. It has two cryogenic lines and two jetties, and is capable of handling Q-Max vessels.
The agreement with Qatar terminal is the culmination of Grain LNG’s open season proves, which began in November 2019. Following the open season, Grain LNG says that it is fully booked until at least 2029.
Saad Sherida Al-Kaabi, Qatar’s minister of state for energy affairs and president and CEO of Qatar Petroleum, and Jon Butterworth, managing director of National Grid Ventures, signed the agreement in a virtual ceremony in the presence of the UK minister of state for business, energy and clean growth, Kwasi Kwarteng.
‘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,’ says Butterworth.
Al-Kaabi says that the agreement reaffirms QTL’s commitment to the UK gas network, and will ‘facilitate a greater role for LNG as a reliable and economic source of energy in the UK.’