Grain LNG - Qatar

Grain LNG and Qatar Terminal Limited sign long-term agreement that will help to strengthen UK gas security of supply

National Grid’s Grain LNG and Qatar Terminal Limited (QTL), a subsidiary of Qatar Petroleum, have today (13 Oct) announced a 25-year agreement that will provide the Qatari company with storage and redelivery capacity at Grain LNG from mid-2025.

The agreement marks the conclusion of Grain LNG’s competitive “Open Season” process, kicked off in November 2019, and secures the future of Europe’s largest LNG import terminal.

The agreement was signed at a virtual ceremony held by His Excellency Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs and President and CEO of Qatar Petroleum, and Jon Butterworth, Managing Director of National Grid Ventures, part of National Grid plc, in the presence of Kwasi Kwarteng, UK Minister of State for Business, Energy and Clean Growth.

Grain LNG, located on the Isle of Grain in Kent, is currently able to store and deliver enough gas to meet at least 25% of UK gas demand. The UK has recently benefited from a rise in LNG imports, which have contributed to lower wholesale gas prices by increasing ‘gas-on-gas’ competition.  

Jon Butterworth, Managing Director of National Grid Ventures said: “Today is an important day for UK gas security, for Grain LNG, and for the community around the Isle of Grain. LNG imports play a critical role in making sure the UK has the gas it needs, when it needs it. This agreement ensures that Grain will continue to offer the UK a flexible and reliable supply of gas to complement the growth of intermittent renewable generation. It also secures the future of a facility that is a significant contributor to the economy on the Isle of Grain. I look forward to working with QTL in the coming years and to continuing to operate a world-class asset that market participants and UK consumers can rely on."

His Excellency Mr. Saad Sherida Al-Kaabi said, “By entering into this agreement, we are reaffirming our commitment to the United Kingdom’s gas market. We believe this agreement will facilitate a greater role for LNG as a reliable and economic source of energy in the UK.  Our agreement with National Grid Grain LNG will strengthen our position in support of advancing greater access to secure, flexible, and reliable gas supplies for all customers in the United Kingdom. I would like to commend National Grid Grain LNG for a very transparent and successful Open Season process, and look forward to further cooperation to strengthen our relationship,”

Grain LNG is of strategic national importance to UK energy infrastructure and security of supply. It is the largest terminal in Europe and eighth largest in the world by tank capacity with a site that spans over 600 acres in total, delivering high performance for customers, communities and National Grid, through unparalleled safety, reliability and efficiency.

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About National Grid Grain LNG:

National Grid Grain LNG, a wholly owned subsidiary of National Grid, owns and operates the UK’s first modern LNG importation terminal, playing an important role in securing UK gas supply.

Commissioned in July 2005, the terminal is presently able to provide up to 25% of the UK’s gas demand.  LNG is essentially the gas used in homes and business, which has been chilled to -161 degrees centigrade into a liquid state.

In addition to regassification Grain LNG offers add-on services including truck loading bays, reloads, cool-downs and trans shipments.

About National Grid:
National Grid is pivotal to the energy systems in the UK and the north eastern United States. We aim to serve customers well and efficiently, supporting the communities in which we operate and making possible the energy systems of the future.

National Grid in the UK:

  • We own and operate the electricity transmission network in England and Wales, with day-to-day responsibility for balancing supply and demand. We also operate, but do not own, the Scottish networks. Our networks comprise approximately 7,200 kilometres (4,474 miles) of overhead line, 1,500 kilometres (932 miles) of underground cable and 342 substations.
  • We own and operate the gas National Transmission System in Great Britain, with day-to-day responsibility for balancing supply and demand. Our network comprises approximately 7,660 kilometres (4,760 miles) of high-pressure pipe and 618 above-ground installations.