• Expressions of interest invited for capacity rights of up to 20 years at the three UK LNG storage facilities
• Final amount of capacity offered to depend on market interest
• Sufficient interest could lead to investment in additional capacity, injectability or deliverability
National Grid is inviting expressions of interest in long term capacity, up to 20 years, at its three UK Liquefied Natural Gas (LNG) storage facilities around Britain. Capacity at the sites is currently sold on an annual basis, but the intention to offer long term capacity this year was announced at the conclusion of the company’s review of its LNG storage business in November 2008.
The three sites (Avonmouth near Bristol, Glenmavis near Glasgow and Partington near Manchester) offer a specialist service allowing the rapid withdrawal of gas.
National Grid is proposing to offer two different long term services:
• Locational – firm storage capacity rights at a specific facility, with customers responsible for booking their own transmission system entry and exit capacity.
• Non-locational – firm storage capacity rights in a non-specific “virtual storage facility” (although gas would be physically held in one or more of the storage facilities). The customers’ gas would be transferred directly between storage and the National Balancing Point (NBP), with National Grid procuring the entry and exit capacity,
The volume of long term capacity to be offered will depend on the level of market interest. Should interest be sufficient, National Grid would consider investing in additional LNG storage capacity, injectability (the rate as which gas can be liquefied and placed in storage) or deliverability (the rate at which gas can be regasified and delivered to the transmission system).
Market participants who wish to express an interest in long term capacity should contact Bhavesh Suthar (01926 654134, bhavesh.suthar@uk.ngrid.com) to obtain the Request for Proposals document. This will need to be returned by 16 October 2009, setting out indicative non-binding prices offered, contract term (up to 20 years) sought along with any other assumptions or conditions.
Following a short evaluation period, a shortlist of preferred candidates will then be invited to submit firm proposals.
Peter Boreham, National Grid’s Director of UK LNG, said:
“We’re committed to offering our customers the products they want at our UK LNG storage sites. They hold a valuable niche in the market, helping customers stay in balance on peak demand days or react quickly to within day changes in demand or supply. Our flexible open season process gives customers the chance to obtain long term capacity for the first time, driving our future investment plans for UK LNG storage.”
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For further media information only, please contact Stewart Larque, National Grid Media Relations, on 01926 655774, stewart.larque@uk.ngrid.com