Skangas Inks LoI with UK Grain LNG
Norway-based Skangas said it has become the first small-scale LNG supplier to enter into an arrangement with a UK-based LNG import terminal.
Skangas, 70%-owned by Finnish utility Gasum, said December 12 it had signed a Letter of Intent (LoI) with National Grid-owned Grain LNG under which Skangas is to source LNG at its Isle of Grain terminal in southeast England. Skangas produces LNG itself, but struck the deal with Grain LNG to ensure that it has a reliable back-up or incremental LNG supply available, as Skangas's business grows.
Grain LNG, which has 20.4bn m³/yr of UK import capacity, says it remains firmly committed to developing an LNG break-bulk marine facility that will make it possible for small vessels to reload and bunker LNG. “We believe the best way to encourage growth in the market is to offer competitive alternatives which ensure security of supply for small scale market participants,” its senior commercial manager Nicola Duffin said: "Grain LNG is excited to be at the forefront of developing this market in partnership with progressive companies such as Skangas.”
Grain LNG already has a truck loading facility, that allows road tanker operators to load LNG in bulk and transport it to LNG filling stations, as well as to industrial markets throughout the UK. But the facility will in future include an extension to existing jetties to cater for break-bulk marine LNG carriers up to 20,000 m3 in size, and thus could meet the needs of Skangas’ fleet of LNG carriers.
Skangas produces LNG at its 300,000 metric ton/yr plant in Risavika, southwest Norway but says the small-scale market is rapidly developing, and that it already requires more than this on a forward basis.
(Photo above courtesy of Grain LNG)