Grain LNG signs new deal with Sonatrach further strengthening UK security of supply

This is the first agreement for 125GWh/d of import capacity (equivalent to 3 million tonnes per annum of LNG) from Grain LNG’s competitive auction process which was launched in September 2023. The successful outcome of the auction further secures the future of Europe’s largest LNG import terminal into the next decade.

Grain LNG, located on the Isle of Grain in Kent, is currently being expanded to store and deliver enough gas to meet up to 33% of UK gas demand. The UK has recently seen a significant rise in LNG imports as Europe has diversified its LNG sources.  

Katie Jackson, President of National Grid Ventures, said: “Today marks another major milestone in ensuring the UK’s energy security. LNG imports play a critical role in making sure the UK has the gas it needs, when it needs it, providing a flexible and reliable supply of gas to heat peoples’ homes and to complement the growth of renewable generation. 

This agreement ensures that Grain will continue to have a diverse supplier base within the Atlantic Basin. I am delighted that Sonatrach have once again shown a long-term commitment to our world-class site which UK consumers rely on, and I look forward to continuing our working relationship with them in the coming years."

Mayouf Belgacem, Executive Vice President of Sonatrach, said: “We expect that LNG will continue to play a critical role in preserving economic activities and security of energy supply worldwide, and by entering into this agreement we are expressing our willingness to strengthening our position as a long-term partner of Grain LNG and as a substantial contributor to the UK gas security of supply. Besides, this agreement offers Sonatrach guaranteed access to Europe’s largest LNG import terminal, which helps line up Sonatrach’s long term marketing strategy by diversifying its LNG markets.