National Grid Proceeds with Phase II Expansion of the Isle of Grain LNG Project

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). National Grid plc (NYSE:NGG) (London, England) is set to proceed with its planned expansion of the Isle of Grain LNG terminal, located on the River Medway about 20 miles east of London. National Grid has awarded Chicago Bridge & Iron Company (NYSE:CBI) (Woodlands, Texas) the lump-sum turnkey contract for the expansion. The contract has an estimated value of between $470 million and $500 million and Chicago Bridge & Iron is expected to begin main site construction activities by the end of 2005.

The Phase II expansion entails the construction of three new 190,000 cubic meter cryogenic LNG storage tanks and expansion of the vaporization and boil off-gas handling facilities. Phase II will increase the LNG import capacity from its current 3.3 million tons per year to a total LNG import capacity of 9.8 million tons per year, when it is completed some time in mid-2008.

The expansion will increase the overall natural gas send-out capacity to one billion cubic feet per day and will represent some 12% of the United Kingdom’s annual natural gas demand. The initial Isle of Grain Phase I converted the existing facility from a LNG peak shaving plant into a marine LNG import facility at a cost of approximately $155 million. Phase I was completed in March of 2005.

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