National Grid plc announced it would sell the Grain LNG terminal in the UK, Europe’s largest import facility, to help fund its capital investment plans.
The utility said it would invest roughly $76 billion over the next five years for its energy infrastructure network in the UK and the United States to support the energy transition and its own growth.
The company also said it would sell National Grid Renewables, its U.S. onshore renewable energy business. Moving ahead, National Grid said it would focus on interconnectors in the UK and competitive electricity transmission projects in the United States, among other things.
It also issued $9 billion in new shares to help fund its investment plans. The company did not say how much it would sell the Grain terminal for.
The facility is located on the Isle of Grain in Kent. It has a capacity to import 15 million metric tons/year (mmty) of liquefied natural gas, and it can store up to 1 mmty.
LNG imports delivered to the UK are often re-exported to Europe to meet gas demand, where the United States has become the largest supplier of the super-chilled fuel. U.S. offtakers have been providing more than 40% of the continent’s LNG since Russia invaded Ukraine and cut off European gas supplies, according to Kpler data.
More recently, Venture Global LNG Inc., which operates the Calcasieu Pass terminal and is building the Plaquemines export facility, both in Louisiana, signed a deal to secure 3 mmty of import capacity at Grain for a 16-year term.
“Isle of Grain will continue to serve as an important component of the UK’s energy supply,” said a National Grid spokesperson. “We recognize its strategic importance within the UK’s national energy infrastructure and will engage actively with government throughout any sale process, and ensure that all necessary regulatory and government approvals are met.”
