Grain LNG has today (4 July) invited market participants to express an interest in low-cost capacity at the facility from 2029.
Applicants will have until 15 August to submit a non-binding declaration of their interest in capacity at the Grain LNG importation terminal. This is an opportunity for the market to indicate the quantities and duration of the contracts they would like, enabling Grain LNG to determine the best way to proceed and the capacity products to offer
Grain LNG has a series of existing capacity contracts coming to an end over the course of 2029. As a result, Grain LNG expects to be able to offer at least 360,000m3 of storage and 300 GWh/d of regasification capacity for start-up in 2029. As the capacity already exists, this will enable Grain LNG to uniquely offer short term contracts of five years or more and should result in significantly lower cost capacity versus new build terminals.
Nicola Duffin, Commercial Director at Grain LNG said: “LNG represents a vital component in the UK and global energy mix, supporting our security of supply. This looks set to continue in the context of the wider market. LNG is also an important balancing tool for intermittent renewables. The EOI provides a great opportunity to gauge market needs and help us to develop the packages and product offerings that meet those requirements.”
Once the application window closes, responses will be assessed, the product offering finalised and the need for an auction will be determined. Any auction plans must gain Ofgem approval and are subject to a market consultation before the binding auction phase can be launched.
Grain LNG is the largest LNG terminal in Europe and the only one in the UK able to process the full global range of LNG. As a completely independent operator, Grain provides 40% of the UK’s LNG capacity, offering two entry points to the NBP and cost-effective access to Northwest Europe.
Interested parties wishing to register their non-binding interest should complete a short form by 15th August The information obtained will be used to help us define products before potentially launching an auction.
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Rebecca Lawlor – [email protected] or 01926 656 536
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