In a newly launched ‘open season’ process, the UK’s National Grid is seeking feedback from customers interested in buying LNG storage capacity from 2025 at Europe’s largest LNG import terminal
Grain LNG has invited buyers to provide feedback on the new service proposal offering two LNG storage purchasing options during an initial consultation phase until 10 January 2020. Buyers will have the opportunity to place legally binding bids for the capacity by 10 March 2020, and Grain LNG is expecting to allocate capacity by the end of March 2020.
The open season offers market participants an opportunity to secure capacity, following the expiration of the long-term contracts that underpinned the original development of the Grain LNG terminal when it was commissioned in 2005.
The capacity on offer will be a mix of existing and newbuild infrastructure and could increase Grain LNG’s total site storage to 1.2M m3 and total regasification capacity to about 780 GWh/d - equivalent to about 32% of the UK’s total annual gas demand – a rise of 7% over current levels. By optimising existing assets, Grain LNG expects to be able to offer market participants flexible and competitively priced capacity.
Grain LNG has created two distinct service types:
Grain LNG commercial director Nicola Duffin, said: “We’re really pleased with the high level of interest shown by the market. It has allowed us to engage with potential customers and shape our offering to best meet their needs, whilst optimising access to this strategic asset.”
Following final bids in March, Grain LNG expects to award capacity in Q1 2020.