BP has formed a joint venture with Algeria’s state oil company, Sonatrach, to import 500 million cubic feet of liquefied natural gas a day into the UK. Energy delivery firm National Grid Transco (NGT) has signed a 20-year contract for the sale of the initial capacity at the Grain LNG importation terminal with the new BP/Sonatrach venture. Grain LNG, a subsidiary of NGT, will own and operate the terminal, which is scheduled for commissioning at the beginning of 2005, with commercial operations expected to commence shortly afterwards. This first contract for the use of Grain LNG’s capacity represents about 5% of Britain’s gas demand. It will be the first of the new LNG import terminals, constructed to contribute flexibility to Britain’s growing dependence on a diversity of gas import schemes. The contract will enable BP/Sonatrach to import 3.3 million tons of LNG annually through the terminal over the next two decades.
Looking for more projects or tenders?
Subscribe to our Project Preview Newsletter
