Grain LNG Terminal

From Global Energy Monitor
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Grain LNG Terminal is a liquefied natural gas (LNG) import terminal situated on a 600-acre site on the Isle of Grain near Rochester in Kent, UK. It is the largest LNG terminal in Europe and eighth largest in the world in terms of tank capacity, which totals one million cubic meters.[1] An expansion of the terminal's capacity is under construction.[2]

Location

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Project Details

  • Operator: Grain LNG[3]
  • Owner: Grain LNG[3]
  • Parent company: National Grid[3]
  • Location: Isle of Grain, Kent, UK
  • Coordinates: 51.45107, 0.67987 (exact)
  • Capacity: 14.3 mtpa[4][3]
  • Status: Operating
  • Type: Import
  • Start Year: 2005[3]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

Grain LNG Terminal is an LNG terminal on the Isle of Grain near Rochester in Kent, UK.[5]

Grain LNG Terminal is located on the site of an oil refinery that was decommissioned in 1984.[6] The site was subsequently used as a storage site that would withdraw natural gas from NTS, liquify it, and store it onsite at four, 50,000 m3 storage tanks.[6] The facility was utilized for peak shaving, capable of liquifying stored natural gas and providing it into NTS as needed.

Phase 1

Between 2002 and July 2005, the site was converted from a peak shaving facility into an import terminal capable of accepting 3.3mtpa of imported LNG.[7] A jetty, cryogenic pipeline, and ancillary equipment were constructed as part of the conversion.[7]

Phase 2

In December 2008, three 190,000 m3 storage tanks were commissioned, increasing the facility's capacity by an additional 6.5mtpa.[7]

Phase 3

In December 2010, a second LNG unloading jetty and one additional 190,000 m3 storage tank were commissioned, increasing the facility's capacity by an additional 5mtpa.[7]

Opposition

Opposition groups have called into question the necessity of such extensive LNG infrastructure, citing the low utilization rates of the UK's operating LNG import terminals. According to Food and Water Europe's 2019 UK gas profile, "The £250m Dragon LNG terminal in Wales, UK is an exceptional case as the average utilisation rate for the project seems to have been 0 for the last decade. This project has been undergoing 'planned maintenance' work and doesn't appear to supply the UK with gas. Without taking Dragon into account, the average LNG utilization rate of UK LNG terminals stood at only 22% between January 2012 and March 2019, with Dragon LNG even less (~14%)."[8]

Expansion Project Details

  • Owner: National Grid Transco
  • Location: Isle of Grain, Kent, UK
  • Coordinates: 51.45107, 0.67987 (exact)
  • Capacity: 8.7 mtpa[9]
    • Formerly 3.8 mtpa[10]
  • Status: Construction[2]
  • Type: Import
  • Cost: €200 million ($242.3 million)[11]
  • Start Year: 2025[11]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Expansion Background

Phase 4

Possible expansion of the Grain LNG facility is under consideration.[12][13] Grain LNG is inviting bids through its Phase 4 Open Season capacity sale process, with up to 6 mtpa of additional capacity available. [14] As of 2018, there were no expansion development updates since 2014 and the project was then presumed to be cancelled.

An additional 200,000 m3 storage tank and associated regasification facilities will be constructed in Grain. The expansion will be completed by mid-2025 and will add an additional 3.8 mtpa of regasification capacity. By then, total storage will increase to 1.2 million m3 and total regasification capacity will reach 18.8 mtpa.[10] In January 2021, French company VINCI Construction was contracted to build the expansion project.[11] Qatar Terminal Limited, an affiliate of Qatar Petroleum, has agreed storage and redelivery capacity at the Grain Terminal for 25 years from mid-2025. Through a deal agreed in October 2020, the company secured up to 7.2 mtpa of the terminal's future throughput capacity.[15]

As of November 2022, the expansion project is under construction, according to Gas Infrastructure Europe's LNG Import Terminals database.[2]

In February 2024, Grain LNG and Venture Global signed a long-term terminal use agreement under which Venture Global will be able to use 3 mtpa of storage and regasification capacity at the terminal for 16 years, beginning in 2029.[9]

In May 2024, it was reported that National Grid was looking to sell Grain LNG Terminal as it shifts its focus to domestic energy networks.[16]

According to the annual GIIGNL report released in June 2024, construction on the expansion was ongoing and on track for a July 2025 launch.[17] GIIGNL reports that the expansion will increase the facility's total regasification capacity to 23 mtpa, suggesting it will add about 8.7 mtpa rather than 3.8 mtpa (as it has stated in the past).[9][10]

Articles and resources

References

  1. The Grain LNG Terminal, National Grid, accessed August 2017
  2. 2.0 2.1 2.2 GIE LNG Database. Gas Infrastructure Europe. November 2022.
  3. 3.0 3.1 3.2 3.3 3.4 International Group of Liquefied Natural Gas Importers (May 24, 2022). "Annual Report 2022 Edition" (PDF). GIIGNL. Retrieved July 5, 2022.{{cite web}}: CS1 maint: url-status (link)
  4. The LNG Industry: Annual Report 2020, page 53, International Group of Liquefied Natural Gas Importers, accessed April 29, 2020
  5. Grain LNG Terminal, Wikipedia, accessed April 2017
  6. 6.0 6.1 Additional Liquid Natural Gas Storage Tanks at Isle of Grain, Kent, Environmental Statement, Non-Technical Summary, August 2003
  7. 7.0 7.1 7.2 7.3 Grain LNG, National Grid, accessed August 2017
  8. UK Food and Water Europe, accessed December 6, 2019
  9. 9.0 9.1 9.2 GIIGNL. The LNG Industry: Annual GIIGNL Report. June 2024.
  10. 10.0 10.1 10.2 GIIGNL 2021 Annual Report, accessed May 5, 2021
  11. 11.0 11.1 11.2 Adnan Bajic, VINCI to build new storage tank at Grain LNG terminal, Offshore Energy, Jan. 29, 2021
  12. UK's National Grid considering Isle of Grain LNG terminal expansion, Yahoo Finance, 7 Feb. 2014
  13. Grain LNG: Investor Relations, National Grid, November 2016
  14. Phase 4 Open Season, National Grid, accessed August 2017
  15. Qatar secures LNG capacity at UK's Grain terminal for 25 years, Reuters, Oct. 13, 2020
  16. Walker, Laurence (2024-05-23). "National Grid to sell UK's Grain LNG terminal". MONTEL. Retrieved 2024-07-24.
  17. GIIGNL. The LNG Industry: Annual GIIGNL Report. June 2024.

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External resources

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