Centrica plc today announced it has successfully acquired second phase regasification capacity from Grain LNG Limited, a subsidiary of National Grid Transco, which will enable British Gas to access a potential annual volume of 3.4 billion cubic metres (bcm) of liquefied natural gas (LNG) for its customers. The agreement gives Centrica the capability to meet approximately 9 per cent of its current total annual demand via Grain LNG.
Regasification capacity, which runs for 20 years commencing in late 2008, will allow Centrica to purchase and import LNG cargoes from a range of international sources, for delivery at the new Isle of Grain terminal in Kent. Following regasification, supplies will be delivered into the National Transmission System.
Centrica’s investment to take capacity in the new Isle of Grain terminal is part of its strategy to procure future supplies from a range of international sources, including LNG sourced through contracts and investments in upstream equity projects. In August 2004, Centrica signed a landmark deal with Petronas for gas via a new LNG regasification terminal at Milford Haven, providing 3 billion cubic metres of gas per annum for 15 years to British Gas customers, commencing between 2007-2008.
Jake Ulrich, Managing Director of Centrica Energy, said: “This agreement to take regasification capacity at Isle of Grain is further evidence of our commitment to secure future supplies for our British Gas customers from a diverse range of international sources.
“This capacity provides us with a gateway to import gas into the UK and enables us to source LNG through cargoes on the spot market or contract agreements. Our requirement for long term supplies will also help to underpin Grain LNG’s investment in additional infrastructure, which Centrica views as a key part of meeting the UK’s future energy needs.”