In a newly launched ‘open season’ process, the UK’s National Grid is seeking feedback from customers interested in buying LNG storage capacity from 2025 at Europe’s largest LNG import terminal, reports Riviera Maritime Media.
LNG storage purchasing options
Grain LNG has invited buyers to provide feedback on the new service proposal offering two LNG storage purchasing options during an initial consultation phase until 10 January 2020.
Buyers will have the opportunity to place legally binding bids for the capacity by 10 March 2020, and Grain LNG is expecting to allocate capacity by the end of March 2020.
The open season offers market participants an opportunity to secure capacity, following the expiration of the long-term contracts that underpinned the original development of the Grain LNG terminal when it was commissioned in 2005.
The capacity on offer will be a mix of existing and newbuild infrastructure and could increase Grain LNG’s total site storage to 1.2M m3 and total regasification capacity to about 780 GWh/d – equivalent to about 32% of the UK’s total annual gas demand – a rise of 7% over current levels.
Service types by Grain LNG
By optimising existing assets, Grain LNG expects to be able to offer market participants flexible and competitively priced capacity.
Grain LNG has created two distinct service types:
- A ‘Base User’ service which is designed for parties looking to take a significant undertaking in the terminal, with the flexibility to store and send out as required. The Base User will be entitled to 48 berthing slots, 200,000 m3 of working storage and a regasification capacity of 140 GWh/d, throughout a 15- to 25-year contract.
- A ‘Package User’ service, which offers customers a series of 10 day ‘packages’, entitling parties to berth, unload, store and send out LNG – with no minimum send out obligation. The ‘Package User’ service includes 9, 18, or 27 berthing slots per year, working storage of up to 180,000 m3 and 120 GWh/d for a period of ten days. The Package User will have maximum optionality in deciding when to bring cargoes to the UK.
Grain LNG commercial director Nicola Duffin, said: “We’re really pleased with the high level of interest shown by the market. It has allowed us to engage with potential customers and shape our offering to best meet their needs, whilst optimising access to this strategic asset.”
Following final bids in March, Grain LNG expects to award capacity in Q1 2020.
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Source: Riviera Maritime Media