Qatar Petroleum and UK’s Grain LNG sign 25-year storage deal

Qatari state-owned firm Qatar Petroleum’s affiliate Qatar Terminal Limited (QTL) has signed a long-term agreement with the UK’s National Grid Grain LNG for liquefied natural gas (LNG) storage and redelivery capacity.

The two companies signed the agreement for 25 years, which would be valid from mid-2025.

The latest deal comes after the conclusion of an open season process launched by National Grid in November last year.

Qatar Petroleum (QP) noted that QTL will subscribe to the equivalent of up to 7.2 million tonnes per annum (Mtpa) of the LNG terminal’s future throughput capacity.

Qatar Petroleum president and CEO Saad Sherida Al-Kaabi said: “Our agreement with Grain LNG will strengthen our position in support of advancing greater access to secure, flexible, and reliable gas supplies for all customers in the UK.”

The Grain LNG Terminal is situated on the Isle of Grain on the River Medway, Kent, 30km east of London.

It has the capacity to receive and process up to 3.3Mtpa of LNG, or the equivalent of up to 13 million cubic metres (140GWh) of gas a day.

National Grid Ventures managing director Jon Butterworth said: “Today is an important day for UK gas security, for Grain LNG, and for the community around the Isle of Grain. LNG imports play a critical role in making sure the UK has the gas it needs, when it needs it.

“This agreement ensures that Grain LNG will continue to offer the UK a flexible and reliable supply of gas to complement the growth of intermittent renewable generation. It also secures the future of a facility that is a significant contributor to the economy on the Isle of Grain.”

In April, Qatar Petroleum completed the integration of SEEF Limited’s (SEEF) operations into QP.