Doha: Qatar’s energy sector plays an important role in meeting the demands of the United Kingdom for Liquified Natural Gas. The Qatari sector provides the UK with 20 percent of its demand. The number is likely to increase to between 70 percent and 80 percent between 2030 and 2024 as the UK government looks to diversify its natural gas resources.
The strategic bilateral ties between Qatar and the UK are reflected on the ground in a number of projects and agreements that include the energy sector. South Hook LNG terminal, launched more than 12 years ago, is the cornerstone of that partnership and a true example of a win-win situation.
Minister of State for Energy Affairs H E Saad bin Sherida Al Kaabi stressed in a celebration of South Hooks 10-year anniversary that the UK was a highly important market for Qatari LNG, citing the attractive business environment and stable regulation. He added that investment in the energy field bolsters the longstanding bilateral ties between the two nations.
South Hook also represents an important tool for development locally. Not only is it an important regasification terminal, but it’s also a reliable employer, and a supporter of local businesses and communities.
The terminal ensures the security of energy supplies to one of the world’s most dynamic economies, ensuring that homes remain warm in the winter, and large industries continue operations uninterrupted.
South Hook is located near Milford Haven, it began operations in 2009 and can handle upto 20 percent of the UKs natural gas needs.
South Hook Liquefied Natural Gas began operations in March of 2009, with the arrival of the Q-Flex LNG ship that unloaded the shipment. The project was inaugurated in May of the same year. It is a 70-30 partnership between QatarEnergy and Exxon Mobil.
Qatar Terminal Limited (QTL), a subsidiary of QatarEnergy signed 25-year agreement with National Grid back in 2020 that will provide the Qatari company with storage and redelivery capacity at Grain LNG. Under the agreement, which will start operating in 2025 and will last for 25 years, the Qatar Power subsidiary will be able to utilize the storage capacity available at the Isle of Green in Kent, to receive up to 7.2 million tons a year.
Al Kaabi also highlighted the strong cooperation between Qatar and the UK in the field of energy. “Our agreement with Grain LNG will strengthen our position in support of advancing greater access to secure, flexible, and reliable gas supplies for all customers in the UK. I would like to commend National Grid for a very transparent and successful Open Season process, and look forward to further cooperation to strengthen our relationship,” he added.
Grain LNG, located on the Isle of Grain in Kent, is currently able to store and deliver 7.2 million tons a year. It also has a storage capacity of one million cubic meters of liquefied natural gas distributed among 8 tanks, and an annual production capacity of 20 billion cubic meters. Grain LNG is currently able to store and deliver enough gas to meet at least 25 percent of UK gas demand. The UK has recently benefited from a rise in LNG imports, which have contributed to lower wholesale gas prices by increasing gas-on-gas competition. The agreement will allow National Grid to expand its facilities, including an additional reservoir and associated evaporation capacity, bringing its future annual production capacity to 25 billion cubic meters of natural gas.
