Grain LNG Terminal Phase III

Promoter – Financial Intermediary

National Grid Plc 1-3 Strand London WC2N 5EH United Kingdom Contact: Mr. David MORGAN

Location

• United Kingdom

Description

The Project consists of the design, construction, commissioning and operation of unloading, storage and re-gasification facilities at the Grain LNG import terminal as part of the terminal's phase 3 development. The main components include a new full containment LNG storage tank and a new jetty with unloading facilities for LNG carriers.

Objectives

The project will provide additional LNG import capacity to accommodate gas from outside UK in view of declining supplies from indigenous sources.

Sector(s)

• Energy

Proposed EIB finance (Approximate amount)

Up to GBP 160 million.

Total cost (Approximate amount)

Estimated to be about GBP 316-320 million.

Environmental aspects

The Grain LNG terminal expansion phase III was identified by the promoter and the competent authority to classify under Annex II of the EIA Directive 85/337/EEC and its amendments. Due to the size of the development, its location relatively close to nature protection areas and the potentially hazardous impacts related to natural gas the promoter has carried out an EIA as stipulated by the criteria defined in the directive and in the national regulation for such projects. Planning permission was granted from the Medway Council.

Procurement

A private sector type procurement approach was followed for the Project, which will be implemented under a lump sum EPC contract, awarded in May this year after international tendering among three pre-qualified companies/consortia.

Status

Signed - 7/03/2008