A subsidiary of Qatar Petroleum (QP) has signed a long-term agreement with the UK’s National Grid Grain LNG for liquefied natural gas storage and regasification capacity at the Isle of Grain receiving terminal in Kent, England.
The 25-year agreement will enable QP to utilise the terminal 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 Qatari giant said on Tuesday.
QP said the agreement “marks the conclusion of Grain LNG’s competitive 'Open Season' process, which started in November last year".
QP chief executive Saad Sherida al Kaabi said that, by entering into the agreement, QP has reaffirmed its commitment to the UK’s gas market.
The Isle of Grain LNG Terminal is located on the UK’s southeast coast and began operations in 2005.
The LNG import facility is regulated by the Office of Gas & Electricity Markets (Ofgem) in the UK.
The terminal, operated by National Grid Grain LNG, currently has a capacity to store and deliver enough gas to meet at least 25% of the UK’s demand, QP said.
“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,” it added.
The agreement between QP and the UK player will allow National Grid to expand its facilities including an additional tank and associated vaporiser capacity, bringing its future annual throughput capacity to 25 billion cubic metres of natural gas, the company statement added.