Venture Global and Grain LNG have entered into a terminal use agreement to enhance the security of natural gas supply to the UK.
The deal will grant Venture Global access to 3mtpa of LNG storage and regasification capacity at the Isle of Grain LNG receiving terminal, starting in 2029. This capacity is equivalent to up to 5% of the average UK gas demand.
Subject to federal permit approvals, the 16-year agreement is scheduled to start in 2029.
It is a result of Grain LNG’s competitive auction process initiated in September 2023.
Grain LNG is currently expanding to increase its regasification capacity.
Venture Global’s investment in its Louisiana terminals, including CP2 LNG, is expected to enhance its role as a key supplier to the European market.
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Venture Global CEO Mike Sabel said: “The Grain LNG terminal is an important gateway to the broader European market, and we look forward to supplying the region through this new access point for years to come.”
The Grain LNG terminal is operated by National Grid.
National Grid Ventures president Katie Jackson said: “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 peoples’ homes.
“The UK has recently seen a significant rise in LNG imports as Europe has sought alternative energy sources. 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.”
In December 2023, Reuters reported that oil and gas producer Inpex and power utility JERA urged the US Federal Energy Regulatory Commission to expedite approvals to Venture Global LNG for the development of the proposed CP2 LNG project in Louisiana.