US LNG exporter Venture Global LNG has booked long-term capacity at National Grid’s Grain LNG import terminal in the United Kingdom.
Under the binding terminal use agreement, Venture Global will have the ability to access 3 million tonnes per annum (mtpa) of LNG storage and regasification capacity at the Isle of Grain LNG receiving terminal for sixteen years beginning in 2029,
Grain LNG said in a statement this is equivalent of up to 5 percent of average UK gas demand.
It will enable the regasification and sale of LNG from all of Venture Global’s LNG terminals in Louisiana, including CP2 LNG, subject to obtaining necessary federal permits.
Also, this is the second agreement from Grain LNG’s competitive auction process which was launched in September 2023.
The successful outcome of the auction “further secures the future of Europe’s largest LNG import terminal into the mid 2040s,” it said.
Prior to this, Grain LNG signed a ten-year deal with Algeria’s LNG producer Sonatrach.
The UK has recently seen a significant rise in LNG imports as Europe has diversified its LNG sources.
Europe’s largest LNG terminal welcomed 102 ships during the financial year which ended in March last year, breaking its previous record of 71 ships set in the financial year 2019 – 2020.
Also, the LNG terminal has sent 102,589 GWh of gas into the grid over the twelve-month period ending May 31, the equivalent of almost 14 percent of total UK gas demand.
Currently undergoing expansion, Grain LNG will soon have enough regasification capacity to service about one third of the UK’s gas demand, serving as a gateway to the UK energy market as well as the broader European region, it said.
Venture Global’s first investment in LNG infrastructure outside of US
With volumes across its projects – Calcasieu Pass, Plaquemines LNG and CP2 LNG – this investment will bolster Venture Global’s status as a “strategic supplier” to Europe, the statement said.
Venture Global’s existing Calcasieu Pass liquefaction plant is located in Louisiana, but it still has not declared commercial operations.
“This flexibility and access to Venture Global’s volumes will be critical to the UK and Europe’s efforts to replace LNG volumes from other suppliers,” the statement said.
To date, Venture Global has exported about 75 percent of its cargoes to Europe, according to the statement.
Venture Global is Grain LNG’s first US customer.
Mike Sabel, CEO of Venture Global said in the statement that the company “is thrilled to announce our first investment in LNG infrastructure outside of the United States, bolstering our ability to supply LNG from all our projects.”
“The Grain LNG terminal is an important gateway to the broader European market, and we look forward to supplying the region through this new access point for years to come,” he said.