• Market interest to be identified through open season process
• Volume and timing of additional capacity dependent on customer requirements

Following the successful completion of Grain Phase 2 on time and on budget in December 2008, and with Grain Phase 3 on target for winter 2010/11, National Grid is exploring options for a fourth phase of capacity at its LNG importation terminal located on the River Medway, close to London and the centre of UK gas demand.

As part of assessing the feasibility, National Grid is seeking to identify the level of market interest through an open season process where LNG market participants will be able to bid for the right to berth LNG carriers and unload LNG into the facility for its temporary storage, prior to regasification and delivery of gas into the UK’s National Transmission System.

National Grid is considering a range of options with the delivery timescale dependent upon the scale of additional LNG importation capacity ultimately required by customers.  Market participants interested in the open season process at Grain are invited to apply for the Requests for Proposals documents by contacting Antony Brook at antony.brook@uk.ngrid.com, +44 (0) 1634 273243. 

Peter Boreham, National Grid’s Director of UK LNG, said, "National Grid has led the way for Britain in the field of LNG importation. This was the first UK LNG importation terminal of the modern era, and will have the capacity to meet 20% of Britain's gas demand by winter 2012.

"Our investment in the existing three phases is near £1 billion and if there is market appetite for more capacity then we'll look to invest further and develop Grain phase 4."

This is the fourth open season process to be undertaken at the Grain LNG terminal by National Grid. BP/Sonatrach acquired the first phase of 3.3 million tonnes of LNG per annum in October 2003; Sonatrach, GDF-Suez and Centrica acquired the second phase of 6.5 million tonnes LNG per annum in March 2005 and E.ON, Iberdrola and Centrica acquired the third phase of 5 million tonnes LNG per annum in May 2007.

-Ends-

For further media information only, please contact Stewart Larque, National Grid Media Relations, on 01926 655274, stewart.larque@uk.ngrid.com.

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 and expanded in December 2008, the terminal is at present able to provide 9.8 million tonnes of LNG capacity per annum. Phase 3 will offer an additional 5 million tonnes of LNG capacity per annum from winter 2011/12.

Liquefied Natural Gas is essentially the gas used in homes and business, but chilled to -161 degrees centigrade into a liquid state. LNG 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 North Africa and the Middle East. Stored at these low temperatures, LNG will not burn as a liquid and the industry has an excellent safety record.

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 millions of people across Great Britain and northeastern US in an efficient, reliable and safe manner. We believe the power of action can play a major role in safeguarding our global environment for future generations and tackling the effects of climate change, providing all our customers with the highest standards of service through network investment 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.
National Grid also operates the National Gas Emergency Service freephone line 0800 111 999*.
*All calls are recorded and may be monitored.

www.nationalgrid.com