Energy team supports Grain LNG on major capacity expansion
Grain LNG, which is part of National Grid, is located in the Thames estuary. It is an essential element of the UK’s energy infrastructure and boasts the largest LNG tank capacity in Europe. The terminal’s current capacity is highly sought after among leading global energy companies, as it allows direct access to the UK’s National Balancing Point (NBP) trading hub.
The next ambitious stage of redelivery capacity could increase Grain’s storage to 1,200,000 m3 and regasification capacity to 780 GWh/d. This phase is set to be operational from mid-2025. For those looking to make the most of the expansion, the ‘open season’ process started on 1 November and ends on 31 March 2020.
Our senior partner and head of energy, Andrew Whitehead, along with our legal director, Chandni Ruparelia, have provided expert advice to Grain LNG throughout. They have helped to create the extensive access rules and commercial arrangements on which the new capacity will be offered.
Andrew Whitehead said: “This is an impressive landmark for Grain LNG, as well as being a considerable development for the UK’s energy market. A vital part of the country’s energy offerings, LNG will continue to be relied upon far into the future. As a result, it is of the highest importance that capacity growth continues. Without it, supply will become idle and the UK’s position as a global gas hub will weaken.
“It has been a fascinating experience to work alongside Grain LNG during this first stage of the process. It has involved some incredibly technical contract work, which has been great to get stuck into. I’m certain Grain LNG will enjoy a fantastic open season.”
Nicola Duffin, Head of Commercial at Grain LNG, said: “With the help of Shakespeare Martineau, we have developed a unique and innovative service offering, designed to provide capacity holders with maximum flexibility. As we progress through the open season, we will be working closely together to ensure that the final contracts meet market needs.”
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