Grain LNG puts 2025 capacity on offer

UK’s Grain LNG import terminal said that up to 8.3 mtpa of capacity and over 100 berthing slots could be made available at the terminal in 2025.

Grain LNG said that the capacity on offer was a combination of newbuild and existing capacity which comes out of contract in 2025.

The expansion will increase the size of the terminal to approximately 1.2 million cubic meters, the operator said in its statement.

Nicola Duffin, commercial manager for Grain LNG, said, “Grain already has the largest storage tanks in Europe […]. With the expansion of Grain we will further optimize our existing assets, which means we’ll be able to be more competitive than typical new build capacity.”

Grain could also benefit from proposed changes to the gas specification rules in the UK, which would significantly reduce variable costs for LNG shippers.

The UK’s Wobbe Limits currently require some sources of LNG to be blended with nitrogen to meet UK gas specifications. Plans are underway to increase these limits, which could come into force by April 2020 as part of the Gas Safety Management Regulations (GSMR).

Proposals call for the Wobbe Limit to be changed to 52.85 MJ/m3 – a limit that would allow all but rich LNG to enter the grid without blending.

Duffin added, “LNG would be subject to lower processing and variable costs. Lower costs will make the UK a more attractive destination for LNG, which ultimately benefits UK energy consumers.”

Additional services available at Grain include reloads, transshipments and a multi-bay facility for reloading road tankers, and ISO containers. A marine breakbulk facility is also planned for 2021/22.

UK terminals have seen a considerable increase in utilization this winter as new global supplies have come online and the economics of moving LNG from the Atlantic to the Pacific basin have failed to stack up.