National Grid’s Isle of Grain LNG importation terminal today is expecting the largest ever liquefied natural gas cargo to arrive in the UK. This begins the final stage phase of commissioning the £355million expansion of the UK's leading LNG terminal.

Three of the world’s largest above ground LNG storage tanks, each the size of the Albert Hall, have been built to store liquefied natural gas,  boosting  the capacity of the expanded terminal to be capable of supplying 12% of UK gas demand.

Centrica, one of three customers, including GDF-Suez and Sonatrach, will deliver the first cargo using a Q Flex super tanker– the first time a ship of this size has come to the UK. There will be nearly 50 million therms of LNG on board the Al Khuwair tanker, enough to supply around 4.5 million homes for a week. 

With gas demand rising and domestic production from the North Sea continuing to decline, the UK will need to import around 50% of its gas by 2010. The importation of liquefied natural gas is set to fill a large part of the supply gap.

LNG is formed by chilling gas to -161ºC so that it occupies 600 times less space than its gaseous form. This makes it an ideal way of storing and transporting large volumes of gas.
National Grid’s importation terminal became operational in 2005 following £130 million investment for the first phase of development which currently has the capacity to meet 4% of UK gas demand.  With the commissioning of phase 2 in progress, and construction already underway for phase 3 the overall investment by National Grid will be over £800million.
          
Peter Boreham, National Grid’s Director of UK LNG, said, ”In less than 2 years this country will need to be importing more than half of its gas needs, so it’s vital that we have modern importation facilities. The terminal expansion allows for more security and diversity in gas supplies for the UK. With the phase 3 expansion already underway we will have the capacity to provide 20% of UK demand in 2010”.

Secretary of State for Department of Energy and Climate Change, Ed Miliband, said: “The more options we have for importing our gas the more secure are the flows coming into the UK. LNG will become increasingly important as our own gas reserves decline and will make it easier to get the gas we need. Today’s shipment shows that LNG is already making a contribution to securing the UK’s energy supplies.

Simon Bonini, Centrica LNG Director said “LNG will play a pivotal role in maintaining supplies for British Gas customers as North Sea production declines. This initial shipment is an important step in ensuring we have the ability to import gas from a diverse range of international sources. Our capacity at Isle of Grain is just one of many strategic investments Centrica is making in new gas and power assets to secure the UK's future energy needs.”

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National Grid Grain LNG
National Grid Grain LNG, a wholly owned subsidiary of National Grid, owns and operates the UK’s first truly commercial LNG importation terminal, playing an important role in securing UK gas supply. Commissioned in July 2005, the terminal is at present able to provide 3.3 million tonnes of LNG capacity per annum. Phase 2 will offer an additional 6.5 million tonnes of LNG capacity per annum.

LNG is essentially the gas used in homes and business, which has been chilled to 161 degrees centigrade into a liquid state. Liquefied Natural Gas takes up 600 times less space than in its gaseous form which makes it an ideal way of storing and transporting large volumes of natural gas from diverse sources such as Algeria, Trinidad and the Middle East. Stored at these low temperatures, LNG will not burn as a liquid and has a good safety record.

Further information available at www.nationalgrid.com/grainlng

National Grid
National Grid is an international electricity and gas company and one of the largest investor-owned energy companies in the world. We play a vital role in delivering gas and electricity to many millions of people across Great Britain and northeastern US in an efficient, reliable and safe manner. We are committed to safeguarding our global environment for future generations and providing all our customers with the highest standards of service through investment in our networks and through our talented, diverse workforce.

National Grid owns the high-voltage electricity transmission network in England and Wales and operates the system across Great Britain. It also owns and operates the high pressure gas transmission system in Britain and its distribution business delivers gas to 11 million homes and businesses.

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