Grain LNG is seeking industry feedback on a new service proposal during an initial consultation phase between 1 Nov 2019 and 10 January 2020.
The market is invited to place legally binding bids for the capacity by 10 March 2020, and Grain LNG is expecting to allocate capacity by the end of March 2020.
The open season offers market participants a brand-new capacity opportunity, following the expiry of the long-term contracts that underpinned the original construction and development of the Grain LNG terminal.
The capacity on offer will be a mix of existing and new-build infrastructure, and could increase Grain LNG’s total site storage to 1,200,300 m3 and total regasification capacity to ~780 GWh/d - equivalent to more than 30% of UK gas demand*. By optimizing existing assets, Grain LNG expects to be able to offer market participants flexible and competitively-priced capacity.
Positive feedback to a recent ‘Expression of Interest’ exercise enabled Grain LNG to create two distinct service types:
Nicola Duffin, Grain LNG’s Head of Commercial, said: “We’re really pleased with the high level of interest shown by the market. It has allowed us to engage with potential customers and shape our offering to best meet their needs, whilst optimising access to this strategic asset.
“This is an exciting time for Grain LNG, as we prepare to offer capacity that will allow customers to secure long-term access to the National Balancing Point. Grain LNG will continue to provide a reliable service to our current capacity holders and play a key role in ensuring gas security of supply for the UK.”
Following final bids in March, Grain LNG expects to award capacity in the first quarter of 2020.
Additional details can be found at www.grainlng.com.
*780 GWh/d per year is equivalent to about 32% of UK demand.
Contact for media information only: Simmie Korotane: National Grid Media Relations / +44(0)7971 343383 / [email protected]