Grain LNG Importation Terminal Winter

Geoff Feasey Grain LNG

3 April 2007 Ofgem seminar Contents

 Winter Performance

 The Future National Grid Grain LNG Limited

Š Is a wholly owned subsidiary of National Grid.

Š Owns and operates the Grain LNG importation terminal at the in the south east of England.

Š Operates the importation and regasification process of liquefied gas.

Š Commercial Operations commenced 15th July 2005.

Š This terminal was the first UK LNG importation facility and provides 4% of the UK demand.

Winter deliverability is increasing

1st October 2005 – 28th February 2007

 2005 – 2006 13 Vessel unloads (1,706,986 m3 11676 Gwh)

 2006 – 2007 22 Vessel unloads (2,925,969 m3 19581Gwh)

Average flow 2005 2006 71,816,536Kwh 128,894,412Kwh

Export performance against nominations 2005 2006 99.37% 100.27%

FTP 14 5 Site Send-out Data 05-06

200

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160 140

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60 Daily Send-out (GWh) Send-out Daily 40

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05 05 005 005 06 /2005 /2005 2005 006 0/20050/20050/2 0/20050/2 0 0/20051/20051/20 1/20051/20 1 /2006 /2006 1/20052/20052/20052/20052/20052/ 2/20051/20061/20061/20061/20061/2 1 2/20062/20062/20062/20062/20 2 1/1 /1 /1 01/1 06/1 11/1 16/1 21/1 26/1 3 05/1 10/1 15/1 20/1 25/1 3/0 3/0 30 05/1 10/1 15/1 20/1 25/1 30 04/0 09/0 14/0 19/0 24/0 29/0 0 08/0 1 18/0 23/0 28/0 Site Send-out Data 06-07 200

180

160 140

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60 Daily (GWh) Send-out 40

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07 7 06 06 00 07 0 0 006 06 2007 0 007 2 006 0 006 06 /2 0/2 2 0 006 06 06 6 /10/2 /1 2 0 0 00 006 06 7 /02 /02/ 02/2 02/2 /10/ /10/ 10/2 11/2 1/2 2 0 07 08 3 / / 01/10/200606 11 6 1 / / /1 /11/ 0 00 007 07 07 1 18/02/200723 1 2 26/10/200631 5 /11/2 12/2 2/2 2 0 0 0 28 05 10 1 / /1 /12/ 1/2 1/2 20/11/200625/11/200630 05 5 /12/2 /0 10 1 20/12/200625/12/2006 /0 /01/ /01/2 01/2 2/2 30 04 09 14 / /0 19/01/200724 29 03 Phase 2 October 2006 Phase 2 at February 2007 Phase 2 expansion project

 £355m investment

 Increases Grain LNG capacity to 9.8 mtpa (~12% of current UK gas demand)

 Increases LNG storage from 200,000 m³ to 770,000 m³

 20 year fixed income contract with Sonatrach, GdF and

 Principal contractor is CB&I, construction started June 05

 Up to 800 construction personnel on site in 2006/7

 Project on schedule for operation by winter 2008 Phase 2 heat pipe agreement reached

 Contract signing announced last week with E.ON who are developing a 1275MW gas-fired station at Grain

 The heat pipe will be constructed connecting Grain to Grain LNG. The pipe will transport excess heat from the power station returning cooler water

 This will heat the LNG, for vaporiser use, which is cheaper than burning fuel and is environmentally friendly

 Planning application March 07

 Construction 09-09

 First heat transfer early 2010 (subject to full operation of power station) Heat pipe is great for the environment

Š Reduce nitrogen oxides emissions

Š Reduce the amount of used in the vaporisation process up to 169 Million standard m3 per year

Š Reduce Co2 emissions by up to 343,731 tonnes per year Heat pipe route Phase 3 capacity auction

 Size and timing subject to market demand

 Up to 5 million tonnes of annual capacity offered to market in December 2005

 If progressed would require: - Construction of a second jetty - New re-gasification capacity - Increased storage capacity

 Would mean ~ 20% UK gas demand

 Decision expected by summer 2007