National Grid’s Grain LNG import terminal in the UK has invited market participants to express an interest in capacity at the facility from 2029.
Applicants will have until August 15 to submit a non-binding declaration of their interest in “low-cost capacity” at the Grain LNG import terminal, according to a National Grid statement released on Monday.
“This is an opportunity for the market 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,” it said.
Grain LNG, which recently recorded its highest ever utilization rate, has a series of existing capacity contracts coming to an end over the course of 2029.
As a result, Grain LNG expects to be able to offer at least 360,000 cbm of storage and 300 GWh/d of regasification capacity for start-up in 2029.
As the capacity already exists, this would enable Grain LNG to uniquely offer short-term contracts of five years or more and should result in significantly lower cost capacity versus new build terminals, National Grid 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. LNG is also an important balancing tool for intermittent renewables,” Nicola Duffin, commercial director at Grain LNG said in the statement.
“The EOI provides a great opportunity to gauge market needs and help us to develop the packages and product offerings that meet those requirements,” Duffin said.
