Background

The UK faces a significant energy challenge over the coming years and the exciting developments taking place at the Isle of Grain, in Kent, will ensure National Grid plays a major role in meeting that challenge.

First commissioned in 2005 as an LNG importation facility, the Grain LNG terminal had the capacity to receive and process up to 3.3 million tonnes of LNG (4.4 billion cubic metres of gas) per annum, equivalent to 13 million cubic metres (140GWh/d) of gas per day. Grain LNG’s customers determine the actual LNG throughput.

A 20-year contract is in place with BP/Sonatrach for this first phase of capacity to enable them to import LNG into the UK from other countries. LNG is an ideal way to transport and store gas, as cooled to –161oC it takes up 600 times less space in its liquid form.

Expansion of the terminal, to triple capacity to 9.8 million tonnes per annum (12% of UK gas demand), is now complete with three of the biggest above ground full containment LNG storage tanks in the world.  Each individual tank is big enough to encompass London’s Royal Albert Hall and can hold as much LNG as the first phase of the plant.  This capacity has been sold and is now available to three customers, Sonatrach, Centrica and Gaz de France Suez.

Each of these tanks will store Liquefied Natural Gas (LNG), which comes to Grain from all over the world via special vessels which dock at the state-of-the-art jetty.  More development of the site will be made over the next few years to ensure that it remains at the forefront when it comes to meeting the UK's energy needs, with a further expansion currently underway to provide an additional five million tonnes of capacity in time for winter 2010/11.

Construction work includes a second jetty, able to take the world's largest LNG carriers - the Q-Max - and an additional full containment LNG storage tank of 190,000m3.  The capacity owners for this phase are Centrica, E.ON and Iberdrola.

National Grid Grain LNG aims to be the foremost LNG importation terminal in the world, with a first-class team delivering high performance for our customers, communities and National Grid, through unparalleled safety, reliability and efficiency.

Grain LNG is committed to protecting the environment for future generations and supporting their energy needs, through being an innovative, socially responsible business.

What is LNG and why do we need it?

Liquefied Natural Gas (LNG) is, as its name suggests, natural gas in liquid form.  LNG is formed by chilling gas to -161oC so that it occupies 600 times less space than in its gaseous form.  This makes it an ideal way of storing and transporting large volumes of gas from countries such as Algeria, Trinidad and the Middle East.

LNG is essentially the gas used to heat our homes and businesses, cook our food and provide us with a warm shower.  Gas demand is expected to increase by at least 15% over the next 10 years and dependence on imports is expected to approach 50% by 2010.

Over time, as UK demand grows and indigenous supplies fro the UK Continental Shelf diminish, LNG could make up a significant percentage of the UK's gas supply requirement.  However, it will be fore the market to decide how much.  Grain LNG is ideally placed with existing assets and capability to expand considerably to help address this deficit.

The Grain LNG terminal has several functions:

· To receive LNG ships and unload them

· To store LNG in cryogenic tanks

· To manage LNG stock

· To regassify LNG to meet the needs and demands of customers

  • To send gas into the National Transmission and Local Distribution Systems.