With gas demand rising and domestic production set to decline, the UK will need to import a significant proportion of its gas. The importation of liquefied natural gas (LNG) is set to fill part of the supply gap.

National Grid Grain LNG Limited, a wholly owned subsidiary of National Grid, has constructed the first of the country’s new liquefied natural gas importation and regasification terminals at the Isle of Grain in the south east of England. National Grid Grain LNG owns and operates the importation terminal.

We continue to invest in our Grain LNG facility with capital expenditure of £213 million in 2008/09 compared with £221 million in 2007/08. The investment related to the completion of phase II of the facility during 2008/09 and the continued construction on phase III.

Phase III involves construction of:

• a second unloading jetty,
• an additional 190,000 cubic metre LNG storage tank and
• associated processing equipment.

Phase III is expected to increase the capacity available at the terminal to 14.8 million tonnes per annum, equivalent to around 20% of anticipated UK gas demand for 2010/11.

Further information can be found on nationalgrid.com/grainlng