VTTI to acquire 50% of Dragon LNG from Ancala
Published by Oliver Kleinschmidt,
Editorial Assistant
Tanks and Terminals,
VTTI has entered into an agreement with leading infrastructure manager, Ancala, to acquire its shareholding totalling 50% of Dragon LNG Group Ltd, the owner of a major onshore import terminal for the supply of LNG to the UK market.
Dragon LNG’s regasification terminal is one of the three LNG terminals in the UK. It is located near Milford Haven in Wales, and consists of LNG receiving, storage, reliquefication, regasification, and send-out facilities. The facility can achieve maximum gas send out to the UK national transmission system of up to 9 billion m3, supplying approximately 10% of the UK’s annual gas demand.
Dragon Energy Ltd, a fully owned subsidiary of Dragon LNG Group Ltd, has also developed a solar farm at the facility and is developing additional renewable power projects at the site in support of decarbonising Scope 2 emissions at the LNG terminal.
“As part of VTTI’s Strategy 2028, we are committed to expanding and enhancing LNG regasification infrastructure globally. Our aim is that half of our portfolio will be in transitional and sustainable energy sources by 2028. Following the recent agreement in Italy to acquire a 70% equity stake in Adriatic LNG in Italy and the ongoing development of a new LNG import facility in Vlissingen in the Netherlands, this acquisition reflects our commitment to diversify into LNG as a transitional energy source. We are looking forward to partner with Shell to ensure that Dragon LNG continues to operate in a safe and reliable manner while accelerating its decarbonisation and growth path,” said Guy Moeyens, CEO of VTTI.
VTTI has a long-term strategic view on the terminal, furthering the opportunities for decarbonisation of the regasification process and continuing to provide safe and secure, long-term access to the UK gas market.
Dragon LNG is currently owned by Shell 50% and Ancala 50%.
The transaction is subject to customary conditions and is expected to close in 3Q24.
VTTI was advised by KPMG (M&A, financial and tax) and Ashurst (legal).
Read the article online at: https://www.tanksterminals.com/terminals/09052024/vtti-to-acquire-50-of-dragon-lng-from-ancala/
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