State-owned Qatar Petroleum signed a deal booking receiving and storage capacity up to 2050 at the UK’s Isle of Grain LNG terminal.
An affiliate of QP and the National Grid Grain LNG signed the 25-year deal during a virtual ceremony on Tuesday.
Furthermore, the deal will enable the QP unit to utilize the Grain LNG receiving terminal in Kent from mid-2025.
The firm booked the equivalent of up to 7.2 mtpa of the terminal’s future throughput capacity.
QP said the agreement marks the conclusion of Grain LNG’s competitive “Open Season” process, which started in November 2019.
“By entering into this agreement, we are reaffirming our commitment to the UK’s gas market,” Qatar’s energy minister and chief executive of QP, Saad Sherida Al-Kaabi, said.
“We believe this agreement will facilitate a greater role for LNG as a reliable, economic, and environmentally friendly source of energy in the UK,” he said.
Grain LNG expansion
Located on the UK’s southeast coast in Kent, the Grain LNG terminal started operations in 2005.
The terminal is currently able to meet at least 25% of the UK’s gas demand.
It has one bcm of LNG storage capacity spread across eight tanks and an annual throughput capacity of 20 bcm.
This agreement will allow National Grid to expand the Grain LNG facilities. These, amongst others, include an additional tank and associated vaporizer capacity, bringing its future annual throughput capacity to 25 bcm.