Grain LNG phase 4: revocation of third party access exemption

Decision

Publication date

Company

Industry sector

Generation and Wholesale Market

On 8 March 2013, we granted National Grid Grain LNG (GLNG), as owner of an LNG import and export facility, an exemption from the application of section 19D of the Gas Act 1986 in respect of phase 4 of the development of the Isle of Grain LNG terminal. Our decision was approved by the European Commission on 4 June 2013.

Section 19CA of the Gas Act 1986 requires us to revoke an exemption given under section 19C in respect of a facility if construction of the facility has not started within 2 years of the relevant date (in this case, the date of the Commission’s approval). GLNG have confirmed that construction of phase 4 will not commence before 4 June 2015. As a result, we are revoking the current exemption for this phase of the facility with effect from 4 June 2015.

This revocation does not alter our general position on exemptions. If we receive future exemption applications from any party, we will give them due consideration.

Yours sincerely

Frances Warburton
Partner, Wholesale Markets
Duly authorised on behalf of the Gas and Electricity Markets Authority