Centrica, ECP Acquire UK’s Largest LNG Terminal in $2 Billion Deal
Centrica and Energy Capital Partners will acquire the Isle of Grain LNG terminal from National Grid in a $2 billion deal, securing Europe’s largest LNG facility and a key asset for the UK’s energy future.
(P&GJ) — Centrica and Energy Capital Partners (ECP) have agreed to acquire the Isle of Grain liquefied natural gas terminal from National Grid in a deal valued at $2 billion, marking a significant investment in the UK’s energy infrastructure.
Under the agreement, Centrica and ECP will each own 50% of the facility, with the purchase funded partly by $1.4 billion in non-recourse project finance debt. Centrica’s equity investment will total about $260 million.
Located on the Kent coast, the Isle of Grain terminal is Europe’s largest LNG import facility and provides critical regasification and storage capacity to help balance the UK’s energy system. All of its capacity is contracted until 2029, with more than 70% contracted through 2038 and over 50% until 2045.
Centrica Chief Executive Chris O’Shea called the terminal “a strategic asset that will support the UK’s energy security for many decades to come, keeping energy flowing reliably and affordably to households and businesses across the country as we transition to net zero.”
ECP Managing Partner Tyler Reeder said the terminal would play an increasingly important role in delivering dependable energy to the UK and Europe. “We are thrilled to be partnering with Centrica, who bring a wealth of knowledge and experience in the UK energy markets, as we execute our joint vision to optimize this world class asset,” he said.
The companies see potential for further development at the site, including combined heat and power facilities, LNG bunkering, and future hydrogen and ammonia projects.