Thursday 3 December 2020

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QP signs 25-year deal for LNG storage in UK

DOHA, October 15, 2020

An affiliate of Qatar Petroleum and the UK’s National Grid Grain LNG have signed a 25-year agreement to utilize an LNG receiving terminal in Kent from mid-2025, by subscribing up to 7.2 million tons per annum (MTPA) of the terminal’s future throughput capacity.

The agreement marks the conclusion of Grain LNG’s competitive “Open Season” process, which started in November 2019, and is a significant milestone for the future of Europe’s largest LNG import terminal.

The agreement was signed by Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum, and Jon Butterworth, the Managing Director of National Grid Ventures.

Sherida Al-Kaabi said: “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.”

He also highlighted the strong cooperation between Qatar and the UK in the field of energy, as well as the importance of this agreement. “Our agreement with Grain LNG will strengthen our position in support of advancing greater access to secure, flexible, and reliable gas supplies for all customers in the UK. I would like to commend National Grid for a very transparent and successful Open Season process, and look forward to further cooperation to strengthen our relationship,” he added.

Butterworth 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 LNG 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 Qatar Petroleum in the coming years and to continuing to operate a world-class asset that market participants and UK consumers can rely on."

The agreement will allow National Grid to expand its facilities with, amongst others, an additional tank and associated vaporizer capacity, bringing its future annual throughput capacity to 25 billion cu m of natural gas. – TradeArabia News Service


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