Ancala Partners LLP (‘Ancala’), the independent infrastructure investment manager, has announced the acquisition of a 50% interest in Dragon LNG, the liquefied natural gas (‘LNG’) regasification terminal located at Milford Haven, Wales. Ancala acquired the interest on behalf of its managed funds from PETRONAS LNG Sdn. Bhd., a subsidiary of Petroliam Nasional Berhad (‘PETRONAS’). Transaction terms were not disclosed.
Dragon LNG is one of three LNG regasification terminals in the UK. The terminal has a gas send out rate to the UK’s National Transmission System of up to 9 billion cubic metres per annum, providing clean and reliable energy for millions of commercial and residential UK users. Facilities at the terminal were recently enhanced through commissioning of a reliquification plant.
PETRONAS will continue to be a customer of Dragon LNG as a counterparty to a long-term throughput agreement with the terminal.
Lee Mellor, Partner, Ancala, commented:
“Dragon LNG is well placed to benefit from reducing UK gas storage capacity and maturing North Sea gas production. With revenues underpinned by a long-term availability-based throughput agreement with Shell and PETRONAS, the transaction represents an attractive addition to our portfolio and expands our midstream infrastructure activities. We look forward to working with Dragon LNG’s excellent team in continuing to grow and optimise performance of the terminal.”