Expansion

Medway Council approved a second planning application in September 2004 to expand the terminal - including three more LNG storage tanks (190,000m³ each) creating a total storage capacity of 770,000 cubic metres. This will enable LNG throughput at the terminal to be increased by 6.5 million tonnes per annum, making a total capacity of up to 9.8 million tonnes per annum. The decision to go ahead with the expansion of the facilities followed the signing of long-term contracts for the use of the additional capacity with Centrica, Gaz de France and Sonatrach in March 2005. Expansion capacity is expected to be available in late 2008 and equates to additional investment of £355m.

A design and build contract was awarded to CB&I to construct the three new LNG storage tanks and associated works. Construction is well underway on the tanks which are each the size of the Royal Albert Hall.

Contracts for a further five million tonnes per annum (6.7 bcm/yr) of long term LNG importation capacity has been signed with three customers, E.On, Iberdrola and Centrica. The capacity was offered through a third open season auction process and is expected to be available by winter 2010/2011.

Work will commence in summer 2007 and a lump sum contract has been awarded to CB&I to deliver the second jetty, additional 190,000 cubic metre storage tank and associated works required. 

National Grid will be investing £310m in this additional development, bring the total invested in the Grain LNG terminal to over three quarters of a billion pounds.

Phase III information:

Phase III Introduction