National Grid has signed a 25-year contract with a subsidiary of Qatari Petroleum to provide delivery and storage capacity at its Grain liquefied natural gas (LNG) terminal in Kent.
The agreement following a competitive bidding process which kicked off in November 2019. The terminal – the largest in Europe – is currently able to deliver enough gas to meet at least 25 per cent of UK demand.
The contract was signed in a virtual ceremony involving Saad Sherida Al-Kaabi, energy affairs minister and president and chief executive of Qatari Petroleum; Jon Butterworth, managing director of National Grid Ventures; and energy clean growth minister Kwasi Kwarteng.
“Today is an important day for UK gas security, for Grain LNG, and for the community around the Isle of Grain,” said Butterworth. “LNG imports play a critical role in making sure the UK has the gas it needs when it needs it.
“This agreement ensures that Grain will continue to offer the UK a flexible and reliable supply of gas to complement the growth of intermittent renewable generation. It also secures the future of a facility that is a significant contributor to the economy on the Isle of Grain.”