National Grid is to offer a further five million tonnes of long term LNG importation capacity per annum at its Isle of Grain LNG importation terminal, which is located on the River Medway, close to London and the centre of UK gas demand.

National Grid has started an open season process, whereby all LNG shippers 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.

This is the third 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 LNG per annum under a 20-year contract in October 2003; Sonatrach, Gaz de France and Centrica acquired the second phase of 6.5 million tonnes LNG per annum under 20-year contracts in March 2005.

An additional five million tonnes of LNG capacity per annum could be available ahead of winter 2010/11.  This is subject to appropriate market interest, obtaining the necessary permissions for further site development and regulatory consents.

Shippers interested in the open season process at Grain are invited to apply for the Request for Proposals documents by contacting Phil Carter at phil.carter@uk.ngrid.com or Mark Tunney at mark.tunney@uk.ngrid.com by Wednesday 18th January 2006.

ENDS 

For further information please contact National Grid press office:
Louise Farrell         +44 (0)1926 655373         +44 (0) 7974 949989 (m)
Christine Riches    + 44 (0) 7785 508661 (m)

National Grid Grain LNG photographs are available on www.newscast.co.uk