National Grid’s Grain LNG has 31th January 2024 announced a ten-year
agreement that will extend the long-term storage and redelivery capacity of Algerian gas
company SONATRACH at the Grain LNG terminal from January 2029.
This is the first agreement for 125GWh/d of import capacity (equivalent to 3 million
tonnes per annum of LNG) from Grain LNG’s competitive auction process which was
launched in September 2023. The successful outcome of the auction further secures
the future of Europe’s largest LNG import terminal into the next decade.
Grain LNG, located on the Isle of Grain in Kent, is currently being expanded to store and
deliver enough gas to meet up to 33% of UK gas demand. The UK has recently seen a
significant rise in LNG imports as Europe has diversified its LNG sources.
Mrs. Katie Jackson, President of National Grid Ventures said: “Today marks
another major milestone in ensuring the UK’s energy security. LNG imports play a critical
role in making sure the UK has the gas it needs, when it needs it, providing a flexible
and reliable supply of gas to heat peoples’ homes and to complement the growth of
renewable generation.
This agreement ensures that Grain will continue to have a diverse supplier base within
the Atlantic Basin. I am delighted that SONATRACH have once again shown a longterm commitment to our world-class site which UK consumers rely on, and I look forward
to continuing our working relationship with them in the coming years."
Mr. Mayouf Belgacem, Executive Vice President of SONATRACH said, “We expect
that LNG will continue to play a critical role in preserving economic activities and security
of energy supply worldwide and by entering into this agreement, we are expressing our
willingness to strengthening our position as a long-term partner of Grain LNG and as a
substantial contributor to the UK gas security of supply. Besides, this agreement offers
SONATRACH guaranteed access to Europe’s largest LNG import terminal, which helps
line up SONATRACH’s long term marketing strategy by diversifying its LNG markets.