Scandinavian liquefied natural gas (LNG) producer Skangas is to source LNG at the Grain LNG import terminal on the Isle of Grain in the UK.
This was agreed in the letter of intent (LOI) signed with National Grid Grain LNG on December 12.
“Skangas … struck the deal with Grain LNG to ensure a reliable supply of LNG is available, which is critical to the fast-growing small-scale LNG market,” the company said.
As a result, Skangas is said to become the first small-scale LNG supplier to enter into such an agreement with a UK-based import terminal.
Grain LNG, which operates primarily as a large-scale import terminal, plans to develop an LNG break bulk marine facility to make it possible for small vessels to reload and bunker LNG. The facility will include an extension to existing jetties to cater for break bulk marine LNG carriers up to 20,000 cubic meters. This will meet the needs of Skangas’ fleet of LNG carriers, as explained by the company.
Skangas produces LNG at its plant in Risavika, South-Western Norway. However, the small-scale market is rapidly developing, and the plant’s annual production capacity of 300,000 tons has already been exceeded. The company requires external LNG sources and has entered into several contracts with similar large-scale European hubs to source LNG.