£310m expansion of National Grid’s Grain LNG terminal complete – capacity now equivalent to 20% of annual UK gas demand

01/12/2010

  • Commercial operations for additional capacity at Grain LNG importation terminal start on schedule
  • “Boost for Britain’s ability to secure gas from diverse sources”
  • Grain capacity now 650 GWh/day (around 59 million cubic metres of gas), an increase of over 50 per cent and enough to supply up to 12 million homes

National Grid has announced the start of commercial operations today (Wednesday 1 December) of its second capacity expansion, delivered on time and to budget, at the company’s Isle of Grain LNG importation facility.

Following the arrival of the first commissioning cargo of LNG on 29 October, the commissioning process has been completed in just over a month, delivering a 50 per cent increase in terminal capacity for the start of winter.  The expansion provides capacity for new customers E.ON Ruhrgas and Iberdrola, together with additional capacity for existing customer Centrica.  It marks the successful conclusion of a significant period of construction and commissioning with an overall investment by National Grid of more than £800 million and giving Grain LNG the capacity to supply around 20 per cent of UK demand, or  up to12 million houses per day.

Grain has the largest tank capacity of any terminal in the UK with total LNG storage availability of one million cubic metres, equivalent to more than two days’ worth of average UK gas demand.  The new second unloading jetty, capable of berthing and unloading Q-Max vessels, the largest available LNG carriers in the world, ensures National Grid continues to pioneer the way as Britain’s first and largest modern LNG importation terminal.

National Grid is progressing discussions on a further phase of expansion at the terminal with a number of interested parties through an open season process. Timescales and capacity will depend on final market interest, but additional capacity could be available from winter 2015/16.

Peter Boreham, National Grid’s Director of UK LNG, said: “This latest expansion of our Grain LNG terminal is a real boost for Britain’s ability to secure gas from diverse sources, giving the capacity to bring in another 6.7 billion cubic metres of gas per year.

“It’s been a great achievement to deliver such a major investment to time and to budget, while still meeting the daily operational needs of our existing customers.  With discussions about a further phase of the terminal continuing in a very positive way, it cements our position as the UK’s leading LNG importation terminal with a great track record of delivering what we promise .”

National Grid Grain LNG provides open access to the British gas market, Europe’s largest, as well as the mainland European market and is an independent operator with no gas market interests.

Energy Minister Charles Hendry said: “With the widespread cold hitting the UK, it brings home the importance of secure energy supplies for everyone across the country.‬‪

“This Government is committed to ensuring we keep the lights on, and having diverse supplies is crucial to this. This expansion of National Grid’s Grain LNG terminal is very welcome news. The UK still has substantial oil and gas resources, but projects like this also give us access to LNG from as far afield as Algeria, Qatar, Trinidad, and even from Australia.”‬‪

-Ends-


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

Notes to Editors:

Photography of the Grain LNG terminal, which is released for use by media, is available at:
http://www.flickr.com/photos/national_grid/tags/grainlng/


Facts and figures
Grain operates as one terminal but each phase has added new customers and additional capacity:

Phase 1 Phase 2 Phase 3 Total
Customers BP/Sonatrach Centrica, GDF-Suez and Sonatrach Centrica, E.ON Ruhrgas and Iberdrola 
Plant capacity – normal operation 3.3 mtpa
4.4 bcm/yr
140 GWh/day
6.5 mtpa
8.6 bcm/yr
274 GWh/day 

5.0 mtpa
6.7 bcm/yr
236 GWh/day

14.8 million tonnes LNG per annum
19.7 billion cubic metres of gas per year
650 GWh/day
LNG tank volume 200,000 cubic metres 600,000 cubic metres 200,000 cubic metres One million
 cubic metres

   

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.

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