Lloyd's Register Helps National Grid Provide Safe Energy Supply For UK

National Grid has achieved a world first with its LNG terminal at the Isle of Grain in the UK; the first liquefied natural gas (LNG) terminal to be certified against the BSI Publicly Available Specification 55 (PAS 55-1) in a stringent process of assessment managed by Lloyd's Register EMEA.

National Grid Grain LNG's storage capacity has quadrupled with the construction of three state-of-the-art, above-ground storage tanks, the largest of their kind in the world, each with a capacity of 190,000 cubic metres. Each tank will store liquefied natural gas (LNG), which comes to the Isle of Grain from all over the world. The increased capacity will help provide 12% of the expected UK gas needed in a typical winter. With gas demand rising and domestic production from the North Sea in decline, the UK will need to import around 50% of its gas by 2010. The import of LNG is set to fill a large part of the supply gap and provide a vital link between UK and European gas markets and world LNG sources.

Peter Boreham, National Grid's Director of UK LNG said, "National Grid chose to implement PAS 55 as a means of effectively balancing investment and maintaining a rigorous approach to managing our assets in the safety critical LNG industry. Implementing PAS 55 has helped us to successfully meet our customer needs and increase our terminal capacity for imports by four-fold without compromising safety." Boreham continued, "Lloyd's Register EMEA was an active partner working with us throughout our preparations, challenging us to ensure we develop a robust approach to managing our assets within the LNG industry and becoming the first LNG terminal to be assessed to this standard."

During the presentation of the certificate to Peter Boreham from National Grid on April 28, 2009, Iain Light, Group Energy Director at Lloyd's Register, spoke about National Grid's commitment to the project, saying, "National Grid's LNG terminal at the Isle of Grain is an important part of the UK's total energy mix. It is exciting to see National Grid implement a recognised approach on how assets should be managed to improve safety, reliability and availability of their critical energy infrastructures." Light continued, "This level of asset management helps to reinforce to stakeholders and public, National Grid's ability to deliver on its business objectives for increasing safe and reliable energy capacity, and helping to meet the UK's energy challenges while managing the impact of risk on its business operations."

Lloyd's Register provides a seamless range of assurance services to the energy sector to help ensure high-risk and capital intensive assets used by operators in upstream, downstream and power markets, are properly managed and assessed. The combination of Lloyd's Register's experience in the oil, gas, electricity transmission and distribution networks, and its independent, third party expertise for operators in exploration and extraction to classifying marine LNG fleets, highlights the scope of Lloyd's Register's capability across the entire energy supply chain anywhere in the world.

PAS 55 is rapidly becoming the global standard for asset management and this certification reinforces the Lloyd's Register Group as a world leader in PAS 55 certification in Europe, North America and Asia. Light said, "We look forward to continuing to support National Grid through our extensive networks in UK and US in their search for asset management excellence."

About Lloyd's Register

1. Lloyd's Register provides independent assurance to companies operating high-risk capital intensive assets in energy and transportation to enhance the safety of life, property and the environment, thereby helping its clients ensure safe, responsible and sustainable supply chains. The Lloyd's Register Group comprises charities and non-charitable companies, with the latter supporting the charities in their main goal.
2. The Lloyd's Register Group has an impressive track record in verification and related activities to major hazard industries. The PAS 55-1 certificate was awarded to National Grid Grain LNG by Lloyd's Register EMEA, a member of Lloyd's Register Group.
3. The Lloyd's Register Group used its worldwide experience of management systems and asset management expertise in a variety of industries to support the Institute of Asset Management (IAM) in the development of PAS 55. Published by the British Standards Institution (BSI), PAS 55 is a leading management systems framework upon which effective asset management strategies can be based. It was developed as a quality benchmark for management practices in asset-intensive industries such as power, oil and gas and transportation.

About National Grid

1. National Grid's Liquefied Natural Gas (LNG) facility at the Isle of Grain represents a world-class import facility and is making a vital contribution to delivering the UK's energy supply requirements. It supports the continual development of competitive gas markets by providing a vital link between the UK and European gas markets and world LNG sources. A £1B investment and 20-year customer contracts have ensured that National Grid is delivering on its promises at the Isle of Grain terminal, making it the foremost LNG import terminal in the UK.
2. The UK faces a significant energy challenge over the coming years and the exciting developments taking place at the Isle of Grain, in Kent, will ensure National Grid plays a major role in meeting that challenge. First commissioned in 2005 as an LNG import facility, the Grain LNG terminal had the capacity to receive and process up to 3.3 million tonnes of LNG (4.4 billion cubic metres of gas) per annum, equivalent to 13 million cubic metres (140GWh/d) of gas per day. Grain LNG's customers determine the actual LNG throughput. A 20-year contract is in place with BP/Sonatrach for this first phase of capacity to enable them to import LNG into the UK from other countries. LNG is an ideal way to transport and store gas, as cooled to –161oC it takes up 600 times less space in its liquid form.
3. Expansion of the terminal, to triple capacity to 9.8 million tonnes per annum (12% of UK gas demand), is now complete with three of the biggest above ground full containment LNG storage tanks in the world. Each individual tank is big enough to encompass London's Royal Albert Hall and can hold as much LNG as the first phase of the plant. This capacity has been sold and is now available to three customers, Sonatrach, Centrica and Gaz de France Suez.
4. National Grid Grain LNG aims to be the foremost LNG importation terminal in the world, with a first-class team delivering high performance for our customers, communities and National Grid, through unparalleled safety, reliability and efficiency. Grain LNG is committed to protecting the environment for future generations and supporting their energy needs, through being an innovative, socially responsible business.

SOURCE: National Grid