Nicola Duffin (Grain LNG): “LNG is also an important balancing tool for intermittent renewables” (source: Grain LNG)
Europe’s largest LNG receiving terminal, Grain LNG is soliciting non-binding expressions of interest (EOI) in low-cost capacity at the facility from 2029
Located on the Isle of Grain, UK, and owned by National Grid, Grain LNG is offering applicants an opportunity until 15 August to submit a non-binding declaration of their interest in capacity at the Grain LNG import terminal. Those interested will be able to indicate the quantities and duration of the contracts they would like, enabling Grain LNG to determine the best way to proceed and the capacity products to offer.
Grain LNG has a series of existing capacity contracts coming to an end by 2029. As a result, Grain LNG expects to be able to offer at least 360,000 m3 of storage and 300 /d of regasification capacity for start-up in 2029. As the capacity already exists, this will enable Grain LNG to offer short-term contracts of five years or more and should result in significantly lower cost capacity versus newbuild terminals.
Grain LNG commercial director Nicola Duffin said, “LNG represents a vital component in the UK and global energy mix, supporting our security of supply. This looks set to continue in the context of the wider market.”
Ms Duffin noted that natural gas and LNG complements the use of energy sourced from renewables. “LNG is also an important balancing tool for intermittent renewables. The EOI provides a great opportunity to gauge market needs and helps us to develop the packages and product offerings that meet those requirements,” she said.
Once the application period closes, responses will be assessed, the product offering finalised and the need for an auction will be determined. Any auction plans must gain approval from UK regulator Office of Gas and Electricity Markets (Ofgem) and are subject to a market consultation before the binding auction phase can be launched.
Grain provides 40% of the UK’s LNG capacity and offers direct access to the UK’s National Balancing Point, one of the world’s leading gas trading hubs. The site has the largest terminal in Europe and eighth-largest in the world by tank capacity, on a site that spans over 600 acres.
Grain LNG is currently expanding the terminal after signing a contract with Qatar Terminal Ltd in 2020. The site storage will increase to 1.2M m3 from mid-July 2025, and the regasification capacity will increase to 800 GWh per day. As part of the expansion project, Grain LNG will commission a second cryogenic unloading line – and will be the only terminal in Europe able to perform simultaneous unloads.
During April, the Kent, UK facility reported its highest ever monthly utilisation rate, with the terminal exporting a daily average of 431 GWh of gas, beating its previous record of 412 GWh recorded in April 2021. The figure represents 67% of the plant’s total utilisation and equates to approximately 13% of the UK’s total gas demand.
