National Grid Moves Forward with Expansion Plans

---

Researched by Industrial Info Resources (Sugar Land, Texas). National Grid plc (NYSE:NGG) (London, England) is nearing the 65% completion mark on its Isle of Grain LNG receiving and re-gasification terminal being constructed approximately 40 miles east of central London, England. The current Phase II expansion involves the construction of three 190,000 cubic meter cryogenic LNG storage tanks, docking facilities, and re-gasification and administration facilities. The E+P+C contract for Phase II was awarded to Chicago Bridge & Iron Company (NYSE:CBI) (The Woodlands, Texas). The lump-sum turnkey contract for the expansion had an estimated value of between $470 million and $500 million. Completion of Phase II is expected some time in the fall of 2008. Once Phase II is completed the LNG receiving terminal will have a re-gasification capacity of approximately 1.4 billion cubic feet per day (Bcf/d).

National Grid is now planning a Phase III expansion to the Isle of Grain LNG terminal. The Phase III expansion will increase the LNG re-gasification capacity by an additional 700 million cubic feet per day (mmcfd) to a total capacity of 2.1 Bcf/d. The E+P+C contract for the Phase III expansion contract was again awarded to Chicago Bridge & Iron Company.

Under the Phase III expansion contract, CB&I will construct a new jetty with the capability of berthing LNG carriers of up to 265,000 cubic meters in LNG transport capacity. The new jetty will have an unloading rate of 12,000 cubic meters per hour. CB&I will construct an additional 190,000 cubic meter LNG storage tank and new natural gas processing facilities. Construction work on Phase III is scheduled to be completed in 2010. Once completed, the Isle of Grain LNG terminal will be capable of supplying approximately 18% of the UK’s forecasted natural gas demand.

View Project Report - 78000308

Industrial Info Resources (IIR) provides marketing communication services ranging from industrial database solutions to market forecasting, custom analytics, and specialty promotions that support high-level image campaigns.