National Grid's Grain LNG secures 10-year deal with Sonatrach

National Grid's Grain LNG terminal on January 31 announced a ten-year agreement with Algerian gas company Sonatrach. The deal extends the long-term storage and redelivery capacity of Sonatrach at the Isle of Grain terminal from January 2029.

This agreement marks the first successful outcome of Grain LNG's auction process, initiated in September 2023, offering 125GWh/d of import capacity (equivalent to 3mn tonnes/year of LNG). According to National Grid, the Isle of Grain facility, located in Kent, is currently undergoing expansion to accommodate and deliver sufficient gas, aiming to meet up to 33% of the UK's gas demand.

“LNG imports play a critical role in making sure the UK has the gas it needs, when it needs it, providing a flexible and reliable supply of gas to heat peoples’ homes and to complement the growth of renewable generation,” said Katie Jackson, President of National Grid Ventures, said. “This agreement ensures that Grain will continue to have a diverse supplier base within the Atlantic Basin.”

Mayouf Belgacem, executive vice president of Sonatrach, said: “This agreement offers Sonatrach guaranteed access to Europe’s largest LNG import terminal, which helps line up Sonatrach’s long-term marketing strategy by diversifying its LNG markets.”

The terminal can handle up to 15mn tonnes/year of LNG and regasify up to 645 GWh/day.