Dutch energy infrastructure company VTTI has reached an agreement to acquire a 50% stake in Dragon LNG Group (Dragon LNG) from infrastructure asset manager Ancala.
The financial terms of the transaction were not disclosed.
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This move will give VTTI shared ownership of a key LNG import terminal in the UK, which contributes to approximately 10% of the UK’s annual gas demand.
Located near Milford Haven in Wales, the Dragon LNG terminal is equipped with facilities for LNG receiving, storage, reliquefication, regasification and send-out.
It has a maximum gas send-out capacity to the UK national transmission system of up to nine billion cubic metres.
Dragon Energy, a subsidiary of Dragon LNG, has also invested in renewable energy projects including a solar farm at the terminal site, as part of efforts to decarbonise scope 2 emissions at the facility.
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By GlobalDataThe remaining 50% of Dragon LNG is held by Shell.
Headquartered in Rotterdam, the Netherlands, VTTI is backed by Vitol, IFM Investors and Abu Dhabi National Oil Company.
Earlier this year, VTTI, in a consortium with IKAV, agreed to purchase a 70.7% stake in Adriatic LNG from ExxonMobil.
VTTI CEO Guy Moeyens said: ‘’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[ing] with Shell to ensure that Dragon LNG continues to operate in a safe and reliable manner while accelerating its decarbonisation and growth path.’’
The latest acquisition is expected to close in the third quarter of 2024, subject to customary conditions.
