November 1, 2010

 

UK's Grain LNG terminal to receive phase III commissioning cargo

The first commissioning cargo for phase III expansion of the UK's Isle of Grain LNG terminal is due to arrive Friday (Oct 29), marking the realisation of a GBP310 million (US$494 million) investment, said operator National Grid.

 

It also includes a new jetty and the world's largest storage tank.

 

Grid said it is holding discussions for a further phase of capacity expansion set to be available from winter 2015-16, depending on final market interest.

 

The latest round of expansion work will boost regasification capacity to 60 million cubic metres/day once the additional facilities become commercially operational in the next few weeks. Daily maximum output from Grain will be enough to meet roughly 20% of UK gas demand.

 

Grain output is currently capped at 38 million cubic metres/day. The new jetty will be able to host the world's biggest LNG supertankers, or Q-Max class vessels, which can carry up to 265,000 cubic metres of LNG.

 

"A second new state-of-the-art jetty and an additional above ground LNG storage tank-the world's largest and bigger than the Albert Hall-have increased Grain LNG's ability to import and store LNG," Grid said.

 

Grain now boasts the largest storage capacity of any UK terminal at one million cubic meters available, equivalent to more than two days of average UK gas demand.

 

Spain's Iberdrola and Germany's E.ON Ruhrgas are delivering the first commissioning cargo from Norway's Statoil-operated Snohvit liquefaction plant aboard the 145,000 cubic metres Arctic Princess.

 

On Thursday (Oct 28), a number of sources said the Arctic Princess was due to arrive in November, which would have kicked-off commissioning on the terminal's new phase.

 

Iberdrola said in a statement that capacity rights at Grain will help it supply the needs of ScottishPower, a subsidiary, and its two million customers in the UK.

 

Centrica owns capacity rights at Grain alongside Iberdrola and E.ON.

 

Terminal expansion work is designed to offset dwindling North Sea gas output, with the UK's import dependency forecast to increase to around 70% by 2020, Grid said.

 

The latest expansion work brings Grid's total investment in Isle of Grain to GBP800 million (US$1,283.9).