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Thursday, February 1, 2024
Grain LNG and Sonatrach have signed a 10-year agreement that will extend Sonatrach’s long-term storage and redelivery capacity at the Grain LNG terminal in the UK from January 2029.
This is the first agreement covering an import capacity of 125 GWh/d (equivalent to 3 million tonnes per year of LNG), resulting from the competitive auction process initiated by Grain LNG, launched in September 2023. The success of this auction process guarantees the future of the largest LNG import terminal in Europe for the next decade.
The Grain LNG terminal, located on the Isle of Grain in Kent, is currently being expanded to store and deliver the necessary quantities of gas to meet up to 33% of gas demand from the United Kingdom. The latter has recently experienced a significant increase in LNG imports thanks to Europe’s diversification of its LNG supply sources.
Katie Jackson, Chair of National Grid Ventures, said: “Today marks another major milestone in ensuring the UK’s energy security. LNG imports play a vital role in ensuring that the UK can have the gas it needs, when it needs it, by providing a flexible and reliable supply of gas to heat homes and to support the growth of production of renewable energy.
“This agreement ensures that Grain Terminal can continue to have a diverse supplier base in the Atlantic Basin. I am delighted that Sonatrach has demonstrated, once again, a long-term commitment to our world-class facility, which UK consumers rely on, and I look forward to continuing our working relationship with Sonatrach in the coming years.”
Mayouf Belgacem, Vice President Marketing of SO Sonatrach said: “We hope that LNG will continue to play an essential role in preserving economic activities and security of energy supply around the world. By entering into this agreement, we express our desire to strengthen our position as a long-term partner of Grain LNG and a substantial contributor to the security of gas supplies in the United Kingdom. Furthermore, this agreement provides Sonatrach with assured access to the largest LNG import terminal in Europe, which contributes to strengthening Sonatrach long-term marketing strategy in terms of diversification of its LNG markets.
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