The energy team at law firm, Shakespeare Martineau, has completed a project for National Grid Grain LNG (Grain LNG), which will see it enter into a long term contract with a customer, securing the future of Europe’s largest liquefied natural gas (LNG) terminal.
Working for over 12 months, the team, led by senior partner and head of energy, Andrew Whitehead, supported Grain LNG in production of the new contractual frameworks which will support the commercial access arrangements underpinning a substantial capital investment.
After an open season and competitive tender process, Grain LNG announced earlier this month (October) that the additional capacity in the terminal has been awarded to Qatar Petroleum. They will join the existing terminal users, BP/Sonatrach, Centrica, Pavilion Energy, Sonatrach Gas Marketing, Total and Uniper. Grain LNG has said that no further capacity will become available until circa 2029/2030.
Based in the Thames estuary, Grain LNG’s terminal is a vital part of the UK’s energy infrastructure, with the largest LNG tank capacity in Europe. It enables direct access to the UK’s NBP (National Balancing Point) trading hub.
Andrew Whitehead said, “The resulting investment at Grain LNG will significantly improve the UK’s position as a leading gas hub. This project has been several years in the making and the nature of the work required close collaboration across the legal, regulatory, commercial and technical spheres.
“It’s a busy time for the UK’s energy sector, with Brexit on the horizon and the imminent publication of the Government’s long-awaited Energy White Paper. The awarding of this important contract to Qatar Petroleum is a great illustration of the importance of the UK as a hub at the centre of the European and global energy ecosystem.”
Nicola Duffin, Head of Commercial at Grain LNG, said, “We are confident that we have created a service that is beneficial to all involved, offering flexibility and meeting market needs.”