Photo: Shutterstock.com

LNG

1 min read

UK LNG terminal signs 4bcm/year deal with Venture Global

(Montel) The UK’s Grain LNG terminal on Monday signed a 16-year deal with US-based firm Venture Global for 3m/tonnes (4.1bcm) year of storage and regasification capacity from 2029.

The volume was equivalent to up to 5% of average UK gas demand, the terminal’s operator TSO National Grid said in a statement.

This is the second agreement from Grain LNG’s competitive auction process, which began in September 2023.

Last week, the facility signed similar 10-year deal with Algeria’s Sonatrach for 3m tonnes/year of import capacity from 2029.

“LNG imports play a critical role in making sure the whole of the UK has the gas it needs, when it needs it, providing a flexible and reliable supply of gas to heat people’s homes,” said Katie Jackson, president of National Grid Ventures.

“The addition of our first US customer further diversifies our supplier base, underpins UK consumers’ energy security and guarantees the future of our world-class site out to 2045.”

UK LNG imports hit an eight-month high in January of 1.89m tonnes, amid more available US supply and a seasonal upturn in demand.

Europe has turned to imports of the chilled fuel to help substitute for lost Russian gas flows amid the fallout from the Ukraine war.