National Grid to expand Isle of Grain LNG terminal

Capacity at the UK's Isle of Grain regasification terminal will increase for the third time by another 50% to 14.8 million tonnes/year by 2010-11.

Uchenna Izundu
International Editor

LONDON, May 18 -- Capacity at the UK's Isle of Grain regasification terminal will increase for the third time by another 50% to 14.8 million tonnes/year by 2010-11. The terminal, which has a current capacity of 3.3 million tpy, is undergoing a second expansion to 9.8 million tpy to start in 2008.

National Grid PLC subsidiary National Grid Grain LNG Ltd., which operates the terminal, will invest $612.3 million to boost capacity, positioning the terminal to import one fifth of forecast UK gas demand by 2010. This expansion is in response to the UK's growing need for gas imports and its dwindling supplies from the mature UK North Sea.

Under a $500 million lump-sum turnkey contract, Chicago Bridge & Iron Co. NV will construct a jetty to support LNG vessels with capacity as large as 265,000 cu m and with an unloading rate of 12,000 cu m/hr. CB&I also will build another 190,000 cu m full containment LNG storage tank and gas processing infrastructure.

National Grid has secured long-term contracts with E.On, Iberdrola, and Centrica, each of which have taken all the additional capacity to justify the third expansion.

BP PLC and Algeria's Sonatrach have a 20-year contract for 3.3 million tpy of LNG at Isle of Grain. Long-term contracts for the second phase of expansion have been agreed with Gaz de France, Centrica, and Sonatrach.

Contact Uchenna Izundu at uchennai@pennwell.com.

More in Refining & Processing