ship.energy

Qatar Petroleum affiliate to use Isle of Grain LNG receiving terminal

An affiliate of Qatar Petroleum has signed an agreement with National Grid Grain LNG to use the Isle of Grain LNG receiving terminal in Kent.

The 25-year arrangement will come into effect from mid-2025 – with the Qatar Petroleum affiliate subscribing to the equivalent of up to 7.2 million tonnes per annum of the terminal’s future throughput capacity.

The agreement marks the conclusion of a competitive ‘Open Season’ process, which started in November 2019, and Qatar Petroleum said that it is ‘a significant milestone for the future of Europe’s largest LNG import terminal’.

Saad Sherida Al-Kaabi, Qatar’s Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum, commented: ‘By entering into this agreement, we are reaffirming our commitment to the UK’s gas market. We believe this agreement will facilitate a greater role for LNG as a reliable, economic, and environmentally friendly source of energy in the UK.’

Jon Butterworth, the Managing Director of National Grid Ventures, added: ‘This agreement ensures that Grain LNG will continue to offer the UK a flexible and reliable supply of gas to complement the growth of intermittent renewable generation.’

Located on the UK’s southeast coast in Kent, the Isle of Grain LNG Terminal started operations in 2005 and is regulated by the Office of Gas and Electricity Markets (Ofgem). The terminal is currently able to store and deliver enough gas to meet at least 25% of the UK’s gas demand. It has one million cubic metres (cbm) of LNG storage capacity spread across eight tanks and an annual throughput capacity of 20 billion cbm of natural gas.

The agreement with Qatar Petroleum will allow National Grid to expand its facilities with, amongst others, an additional tank and associated vaporiser capacity, bringing its future annual throughput capacity to 25 billion cbm of natural gas.

As previously reported by ship.energy’s sister publication Bunkerspot, in December 2017 Skangas signed a letter of intent (LOI) with National Grid Grain LNG to look at developing an LNG break bulk marine facility to enable small vessels to reload and bunker LNG.

Ian Taylor

Ian Taylor