National Grid’s Grain LNG and Qatar Terminal Ltd (QTL), a subsidiary of Qatar Petroleum, have 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, which began 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 UK’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”.
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