The UK Isle of Grain Terminal, storage for Supplies of LNG gas, was a long term National Grid energy security plan, set up in 2025:
Key highlights
- Grain LNG delivers vital energy security for the UK, providing critical LNG import/export, regasification and rapid response gas storage capacity to balance the energy system
- Aligned with Centrica’s strategy of investing in regulated and contracted assets supporting the energy transition, delivering predictable long-term, inflation-linked cash flows, with 100% of capacity contracted until 2029, >70% until 2038 and >50% until 2045
- Opportunities for efficiencies to create additional near-term value, and future development options including a combined heat and power plant, bunkering, hydrogen and ammonia
- Highly efficient funding structure, with Centrica’s equity investment of approximately £200 million alongside non-recourse project financing
- Strong life of asset returns aligned with Centrica’s financial framework, with an expected unlevered IRR2 of around 9% and an equity IRR2 of around 14%+
- Underpins delivery of £1.6 billion end-2028 EBITDA target3 – Centrica’s share of EBITDA expected to be approximately £100 million per annum and cash distributions expected to be around £20 million on average per annum for 2026-2028, representing an attractive yield on Centrica’s equity investment
- Partnership with ECP (part of Bridgepoint Group plc), one of the largest private owners of natural gas generation and infrastructure assets in the U.S. with direct experience in supporting grid reliability
https://www.centrica.com/media-centre/news/2025/investment-in-grain-lng/
The UK partnered with US Bridgepoint Group.
The UK began receiving LNG from Qatar, supplier of 20 percent of the world’s LNG.
The US-Israeli illegal wat against Iran, which is now nearly 4 months in duration, has ended the supplies of Qatari LNG, from whom the UK received 80% of its LNG security requirements.
How Quickly Can Qatar Restart the World’s Largest LNG Export Hub?
By Alex Kimani – Mar 05, 2026, 7:00 PM CST
- QatarEnergy has declared force majeure on LNG exports after shipping through the Strait of Hormuz halted.
- Restarting LNG production could take weeks or months, as plants must shut down when storage fills and require a slow, sequential restart process to avoid damaging cryogenic equipment.
- Global gas markets face a significant supply shock, with European and Asian prices surging nearly 50%, while U.S. LNG exports have little spare capacity to replace the lost Qatari supply
Fracking in US:
Key Facts About LNG
- LNG stands for Liquefied Natural Gas, which is mainly sourced through fracking.
- Cooling methane gas into liquid form allows the oil and gas industry to shrink its volume by 600x and sell it abroad at high profit.
- U.S. LNG exports have grown from near zero in 2016 to almost 12 billion cubic feet per day by 2024, making the U.S. the world’s top exporter. If all approved projects are built, exports could equal nearly half of total U.S. gas production.
- A 2024 Department of Energy study found that rising LNG exports could raise U.S. gas prices by 30%, costing the average household more than $100 per year by 2050.
- LNG extraction, processing, and export release major pollutants—including methane, carbon dioxide, particulate matter, benzene, and formaldehyde—that harm human health and drive climate change.
- The majority of LNG export terminals are concentrated along the Gulf Coast in Louisiana and Texas near environmental justice communities where low income communities and communities of color already face disproportionate pollution and health burdens.
- LNG’s carbon footprint can exceed coal’s when methane leaks and its long supply chain are considered, and its continued use threatens our climate and undermines investments in clean energy solutions.
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