Venture Global and Grain LNG sign new deal further strengthening the security of supply of natural gas to the United Kingdom
ARLINGTON, Va., Feb. 5, 2024 /PRNewswire/ -- Today, Grain LNG and Venture Global have announced the execution of a binding long-term terminal use agreement (TUA) enabling the regasification and sale of LNG from all of Venture Global's terminals in Louisiana, including CP2 LNG, subject to obtaining necessary federal permits. Under the agreement, Venture Global will have the ability to access 3 million tonnes per annum (3MTPA) of LNG storage and regasification capacity at the Isle of Grain LNG receiving terminal for sixteen years beginning in 2029-equivalent of up to 5% of average UK gas demand.
This is the second agreement from Grain LNG's competitive auction process which was launched in September 2023. The successful outcome of the auction further secures the future of Europe's largest LNG import terminal into the mid 2040s.
Currently undergoing a significant expansion, Grain LNG will soon have enough regasification capacity to service approximately one third of the UK's gas demand, serving as a gateway to the UK energy market as well as the broader European region. The UK has recently seen a significant rise in LNG imports as Europe has diversified its LNG sources.
With volumes across its projects - Calcasieu Pass, Plaquemines LNG and CP2 LNG - this investment will bolster Venture Global's status as a strategic supplier to Europe. This flexibility and access to Venture Global's volumes will be critical to the UK and Europe's efforts to replace LNG volumes from other suppliers. To date, Venture Global has exported about 75% of its cargoes to Europe.
Mike Sabel, CEO of Venture Global said: "Venture Global is thrilled to announce our first investment in LNG infrastructure outside of the United States, bolstering our ability to supply LNG from all our projects. The Grain LNG terminal is an important gateway to the broader European market, and we look forward to supplying the region through this new access point for years to come."
Katie Jackson, President of National Grid Ventures said: "I'm delighted that we are today able to announce the second result from our September auction, commencing a long term partnership with Venture Global. LNG imports play a critical role in making sure the whole of the UK has the gas it needs, when it needs it, providing a flexible and reliable supply of gas to heat peoples' homes.
The UK has recently seen a significant rise in LNG imports as Europe has sought alternative energy sources. The addition of our first US customer further diversifies our supplier base, underpins UK consumers' energy security and guarantees the future of our world-class site out to 2045."
For further information on Grain LNG, go to: www.grainlng.com
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