Grain LNG, a UK gateway connecting global LNG to the European energy market, and Venture Global have executed a binding long-term terminal use agreement (TUA) allowing for the regasification and sale of liquid natural gas (LNG) from all of Venture Global’s Louisiana terminals, including its CP2 LNG terminal.
Under the agreement, Venture Global will be able to access 3 million tons of LNG storage and regasification capacity annually at the Isle of Grain LNG receiving terminal – 37 miles east of London – for 16 years beginning in 2029. This is the equivalent of up to 5% of the average UK gas demand.
“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 of our projects,” said Mike Sabel, Venture Global CEO. “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.”
Currently undergoing a significant expansion, Grain LNG will soon have enough regasification capacity to provide one-third of the UK’s total gas demand and to serve as a gateway to the UK energy market and the broader European region.
This announcement comes at a time when the UK is experiencing a significant rise in LNG imports as Europe attempts to diversify its LNG sources.
This agreement will also bolster Venture Global’s status as a significant supplier to the European region. This flexibility and access to the company’s volumes will be crucial to the UK and Europe’s efforts to replace LNG volumes from other suppliers.
“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 people’s homes,” said Katie Jackson, President of Natural Grid Ventures.
“The UK has recently seen a significant rise in LNG imports as Europe has sought alternative energy sources. This 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,” added Jackson.