Industry NewsThe third phase of the Isle of Grain liquefied natural gas (LNG) terminal has been completed, giving the UK access to additional import capacity. The new unit increases the capacity of the site to 650 GWh/day, up over 50 per cent on previous levels. LNG is becoming a strong part of the UK's energy mix and additional capacity has the potential to mitigate price spikes. However, this depends on the ability of the UK to attract LNG cargoes from around the world, with the fuel also in demand elsewhere, particularly Asia.
The commissioning part of the Phase III project began on 29 October 2010 and its completion marks the start of commercial operations at the site. Part of the upgrade is a new jetty which allows the site to take cargoes from the world's largest Q-Max LNG tankers. Site owners, National Grid, are in discussions on a fourth phase of the project. This will depend on market conditions and demand for extra capacity. This new phase is currently planned to come online in the winter of 2015/16.
Peter Boreham, National Grid's Director of UK LNG, said: "This latest expansion of our Grain LNG terminal is a real boost for Britain's ability to secure gas from diverse sources, giving the capacity to bring in another 6.7 billion cubic metres of gas per year." The development was also welcomed by the Government, with Energy Minister Charles Hendry commenting, "With the widespread cold hitting the UK, it brings home the importance of secure energy supplies for everyone across the country."