An affiliate of Qatar Petroleum and the UK’s National Grid Grain LNG entered into a long-term agreement for LNG storage and regasification capacity.

The 25-year agreement will enable the Qatar Petroleum affiliate to utilise the Isle of Grain LNG receiving terminal in Kent from mid-2025, by 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 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 Minister of State for Energy Affairs and President/CEO of Qatar Petroleum HE Saad Sherida Al Kaabi, and National Grid Ventures Managing Director Jon Butterworth during a virtual ceremony held this week. The ceremony was also attended by senior executives from both sides.

HE Al Kaabi said that by entering into the agreement, they are reaffirming their commitment to the UK’s gas market. He said that the agreement will facilitate a greater role for LNG as a reliable, economic, and environmentally-friendly source of energy in the UK. The minister also highlighted the strong cooperation between Qatar and the UK in the field of energy.

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.

According to Jon Butterworth, LNG imports play a critical role in making sure that the UK has the gas it needs, when it needs it. The agreement, he said, 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 and 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.

Located on the UK’s southeast coast in Kent, the Isle of Grain LNG Terminal commenced 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 1,000,000 cubic metres of LNG storage capacity spread across eight tanks and an annual throughput capacity of 20 billion cubic metres of natural gas. The terminal is operated by National Grid Grain LNG Limited, which has over 30 years of experience in the LNG industry and a best in class safety record.

The agreement with Qatar Petroleum 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 cubic metres of natural gas.

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