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(From Lloyds List)
UK energy regulator Ofgem is threatening to withdraw exclusive access rights enjoyed by BP and Sonatrach at the Isle of Grain liquefied natural gas terminal, writes Tony Gray.
Ofgem has warned Grain LNG, a National Grid subsidiary, that it is may end the third party access exemption order it granted to the terminal's arrangements with BP and to Sonatrach, Algeria's state oil and gas company. If it does, the two companies would no longer have priority access to the terminal and would have to compete with other potential users.
The Isle of Grain terminal has received just four cargoes since it opened in July, despite having capacity for one a week. This low level of import comes against a backdrop of soaring UK gas prices.
Under the 'use it or lose it' arrangements, BP and Sonatrach are ...