National Grid Grain LNG has launched an ‘open season’ process for customers interested in buying capacity at its liquefied natural gas storage facility from 2025. The opportunity follows the end of long-term contracts that underpinned the original construction and development of the terminal, which was commissioned in July 2005, and a positive response could see the terminal’s capacity increased.
A new service proposal is under consultation until 10 January. The market can place legally binding bids for the capacity until 10 March, and Grain LNG is expecting to allocate capacity by the end of March 2020.
The company said the offer includes existing and new-build infrastructure and it may result in an increase in the total site storage to 1,200,300 m3 and total regasification capacity to 780GWh/d. That is equal to more than 30% of UK gas demand, up from 25% currently.
Following a call for expressions of interest, the company is offering:
- A ‘Base User’ service which is designed for parties looking to take a significant undertaking in the terminal over a 15-25 year contract.
- A ‘Package User’ service, which offers customers a series of 10 day ‘packages’ with no minimum send out obligation.
Nicola Duffin, Grain LNG’s head of commercial, said: “This is an exciting time for Grain LNG, as we prepare to offer capacity that will allow customers to secure long-term access to the National Balancing Point.”
Following final bids in March, Grain LNG expects to award capacity in the first quarter of 2020.