BP signs LNG joint venture with Algeria
Energy giant BP has formed a joint venture with Algeria’s state oil company Sonatrach to import 500 million cubic feet of liquefied natural gas per day into the UK, stated a press release.
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 thereafter. This first contract for the use of Grain LNG’s capacity represents around five percent of the UK’s gas demand.
It will be the first of the new LNG import terminals, constructed to contribute flexibly to Britain’s growing dependence on a diversity of gas import schemes. Located on the River Medway, 20 miles east of central London, it is close to the heart of the gas market and some important gas-fired power stations.
The contract will enable BP/Sonatrach to import 3.3 million tons of LNG per annum through the terminal over the next two decades. This equates to an additional 12 million cubic meters of gas entering the National Transmission System every day.
Sonatrach is the second largest LNG producer in the world and the third largest exporter of natural gas with a turnover above $20 billion. It has been successfully involved in LNG for 40 years and was the first to bring LNG to the UK in 1965. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
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