Skanska to build LNG plant in UK for £80 million

Skanska has received two contracts worth £80 million from National Grid Transco to convert a liquid natural gas storage terminal in the Thames Estuary into an importation facility.

Swedish construction company, Skanska has received two contracts from National Grid Transco to convert a liquid natural gas (LNG) storage terminal on the Isle of Grain, in the Thames Estuary, into an importation facility.

The largest contract is for the design, construction and installation of turnkey facilities to import LNG from specially adapted ships.

This includes the construction of a new jetty on the River Medway to allow ships to dock and unload their LNG cargo. In addition, Skanska will construct a 3.5-kilometer pipeline from the jetty to four large storage tanks, including the foundations and land corridor for the pipeline.

The smaller contract is for modifying the four existing tanks, each with a capacity of 50,000 cubic meters, for the storage of the LNG.

The projects will start immediately and are scheduled to be completed by the end of 2004. The existing gas facilities will continue to operate at full capacity during the construction period.

Skanska’s British business unit Skanska UK was awarded these two contracts after first completing a concept study on the project last year. A Skanska UK unit also originally built parts of the Isle of Grain facility in the 1970s.