UK's National Grid to offer winter LNG storage injection rights

UK gas system operator National Grid is to offer to the market firm rights to inject gas into the Dynevor Arms LNG storage facility during the winter, National Grid said in a letter to the industry.
It said it was offering 35 mm KWh of injection (about 3 mm cm) at the south Wales facility for use between November 1, 2008, and December 21, 2008. This is a trial offering.

Most companies including the likes of E.ON UK or Scottish & Southern Energy would typically prefer to inject gas into storage during the summer, when prices are normally lower, and take out in winter, when heating demand and prices are usually higher. Despite that, National Grid thinks that some customers could be interested in taking their gas in and out at a flat rate all year round.
An example might be a haulage firm running a fleet of vehicles that use LNG as a road fuel, which could have a steady demand all year round. The winter storage injection price is 0.621 pence/kWh (about 18 pence/therm).

National Grid LNG Storage will issue the details of its 2008 annual storage invitation covering the majority of its LNG storage services for the 2008/09 storage year. To explain more about the 2008 annual storage invitation, it will hold an open meeting in London.
These LNG storage facilities draw gas from the national pipeline system and liquefy it to use as quick-release storage later. They do not import LNG from abroad.