An affiliate of state-run Qatar Petroleum (QP) has entered into a long-term agreement with the UK’s National Grid Grain LNG for liquified natural gas (LNG) and regasification capacity, according to a press release.
The contract spans 25 years up until the year 2050 and will come into effect in 2025. The deal will enable the QP affiliate to utilize the Isle of Grain LNG receiving terminal in Kent from mid-2025, by subscribing to the equivalent of up to 7.2 million tons per annum (mmt/y) of the terminal’s future throughput capacity.
In his comments during the ceremony, Saad Sherida Al-Kaabi, Minister of State Energy Affairs, said, “By entering into this agreement, we are reaffirming our commitment to the UK’s gas market. We believe this agreement will facilitate a greater role for LNG as a reliable, economic, and environmentally friendly source of energy in the UK.”
Located on the UK’s southeast coast in Kent, the Isle of Grain LNG Terminal commenced operations in 2005 and is regulated by the Office of Gas and Electricity Markets (OFGEM). The terminal is currently able to store and deliver enough gas to meet at least 25% of the UK’s gas demand. It has 1 million cubic meters (mcm) of LNG storage capacity spread across eight tanks and an annual throughput capacity of 20 billion cubic meters (bcm) of natural gas.