National Grid (NG) owns three liquefied natural gas (LNG) facilities that are partially deregulated, providing a combination of commercial and regulated services. All three of these currently supply operating margins (OM) services to National Grid Gas (NGG), in support of the transmission system. In addition, Glenmavis supplies LNG by tanker to Scotia Gas Networks (SGN) to serve the needs of the Scottish Independent Undertakings (SIUs); and Avonmouth has, in the past, provided Constrained LNG.
All of these regulated services are provided at prices set out in Special Licence Condition C3 of the gas transporter’s licence (“C3 prices”). These regulated prices were last reviewed in 2008, and since then, there have been a number of significant changes affecting the NG LNG business. In light of these developments, we have been approached by NG LNG to reconsider the level of the C3 prices, and are currently carrying out this review.