 |
|||
|
April 2009 |
Issue #50 |
||
     |
|||
|
|
|||
|
Cold Comfort – UK’s leading LNG terminal offers a measure of security to UK’s long-term gas demand. MJMEnergy’s Business Development Director, Nick White and Marketing Manager, Derek West were recently treated to a tour of National Grid’s newly expanded LNG Terminal at Grain. Eye-popping statistics, dimensions, volumes, flow rates, pressures and temperatures together with a few superlatives claimed by Grain, were provided by our tour guides, Keith Dennis and Bill Gould. Read on to learn more about the terminal on the Isle of Grain in Kent.
Bill Gould explains the layout of the site to MJMEnergy’s Nick White Background to Grain LNG The UK faces a significant energy challenge over the coming years and the exciting developments taking place at the Isle of Grain, in Kent, will ensure National Grid plays a major role in meeting that challenge. First commissioned as an LNG importation facility in 2005, using 4 LNG storage tanks that had previously been used as a peak-shaving storage facility, the Grain LNG terminal initially had the capacity to receive and process up to 3.3 million tonnes of LNG (4.4 billion cubic metres of gas) per annum, equivalent to 13 million cubic metres (140GWh/d) of gas per day. LNG (Liquefied Natural Gas) is an ideal way to transport and store gas, as cooled to –161oC it takes up 600 times less space in its liquid form. Grain LNG’s customers determine the actual LNG throughput.
Phase 1 of the Grain LNG terminal was completed in 2005. Modifications have been made more recently to allow faster input of the larger volumes now arriving. The two new increased diameter pipes can be seen in this photo. Each of the new tanks is capable of containing all of the volume available in the Phase 1 facility. A 20-year contract is in place with BP and Algeria energy company, Sonatrach, for the first phase of capacity to enable them to import LNG into the UK from other countries, which has seen them bringing LNG cargoes into the UK since May 2005. Expansion of the terminal, to triple capacity to 9.8 million tonnes per annum ( equivalent to 12% of UK gas demand), is now complete with three of the biggest above ground full containment LNG storage tanks in the world. Each individual tank is big enough to encompass London’s Royal Albert Hall and can hold as much LNG as the four tanks of the first phase of the plant. This additional capacity has been sold to Sonatrach, Centrica and Gaz de France Suez.
Each storage tank is a similar size to the Royal Albert Hall, the sheer scale of these structures can be seen in this photo from the size of the builder working on the top. More development of the site will be made over the next few years to ensure that it remains at the forefront when it comes to meeting the UK's energy needs, with a further expansion currently underway to provide an additional five million tonnes of capacity in time for winter 2010/11. Construction work includes a second jetty, able to take the world's largest LNG carriers - the Q-Max - and an additional full containment LNG storage tank of 190,000m3. The capacity owners for this phase are Centrica, E.ON and Iberdrola.
The cryogenic pipeline running down to the jetty past the nitrogen plant. The jetty can just be seen at the far right of the photo. Giant LNG Cargo arrives at National Grid’s Isle of Grain Terminal In November 2008, National Grid received the largest ever liquefied natural gas cargo to arrive in the UK. This begins the final stage phase of commissioning the Ł355million expansion of the UK's leading LNG terminal. Centrica delivered the first cargo using a Q Flex super tanker – the first time a ship of this size has come to the UK. There was nearly 50 million therms of LNG on board the Al Khuwair tanker, enough to supply around 4.5 million homes for a week. With gas demand rising and domestic production from the North Sea continuing to decline, the UK will need to import around 50% of its gas by 2010. The importation of liquefied natural gas is set to fill a large part of the supply gap. LNG is formed by chilling gas to -161şC so that it occupies 600 times less space than its gaseous form. This makes it an ideal way of storing and transporting large volumes of gas. Peter Boreham, National Grid’s Director of UK LNG, said, ”In less than 2 years this country will need to be importing more than half of its gas needs, so it’s vital that we have modern importation facilities. The terminal expansion allows for more security and diversity in gas supplies for the UK. With the phase 3 expansion already underway we will have the capacity to provide 20% of UK demand in 2010”. Secretary of State for Department of Energy and Climate Change, Ed Miliband, said: “The more options we have for importing our gas the more secure are the flows coming into the UK. LNG will become increasingly important as our own gas reserves decline and will make it easier to get the gas we need. Today’s shipment shows that LNG is already making a contribution to securing the UK’s energy supplies. Simon Bonini, Centrica LNG Director said “LNG will play a pivotal role in maintaining supplies for British Gas customers as North Sea production declines. This initial shipment is an important step in ensuring we have the ability to import gas from a diverse range of international sources. Our capacity at Isle of Grain is just one of many strategic investments Centrica is making in new gas and power assets to secure the UK's future energy needs.” Since November there have been further LNG developments across the other side of the country as the South Hook LNG terminal in Milford Haven, Wales, undergoes commissioning. Another Q-Flex tanker, the Tembek, arrived with the terminal's first commissioning cargo in March '09 and commercial operations are due to begin in June or July. The somewhat smaller Dragon LNG terminal, also at Milford Haven, is due to commissioning in Q3'09 and the TeesPort onship regasification project at Teesside is again receiving cargoes. With all four terminals operational, the UK will have sufficient capacity to meet up to half of its gas demand from LNG imports in the coming years, although in practice LNG is likely to be one of a number of different supply sources competing with UK gas production, Norwegian exports and deliveries from Continental Europe. With thanks to Keith and Bill for giving us such an excellent tour. This information has been compiled and is available from National Grid’s website: |
|||
|
MJMENERGY LTD have provided all the information in this newsletter
free of charge to anyone who wishes to read it. We cannot be held
responsible for any inaccuracies although all information is
believed to be correct at time of publication. Whilst articles
published in this newsletter often carry a particular point of view,
publication of them does not imply that we necessarily agree with
them. Anyone wishing to contact the editorial team with regards to
any of the above articles should email: editor@mjmenergy.com, or
phone +44 (0) 845 299 7072. |
|||
