Rotterdam-based storage terminal owner VTTI, co-owned by Vitol, IFM, and Adnoc, has completed its previously announced deal with infrastructure manager Ancala to buy its 50 percent shareholding in the Dragon LNG terminal in the UK.
VTTI announced on May 8 it will acquire the stake in the terminal from Ancala saying the transaction is subject to customary conditions and is expected to close in the third quarter of 2024.
The firm revealed the completion of the deal in a statement on Friday.
Besides VTTI, UK-based LNG giant Shell has a 50 percent stake in Dragon LNG.
Dragon LNG’s regasification terminal is one of the three LNG terminals in the UK.
The facility can achieve maximum sendout to the UK national transmission system of up to 9 billion cubic meters, supplying about 10 percent of the UK’s annual gas demand, according to Dragon LNG.
The terminal’s infrastructure includes a jetty and two 160,000-cbm storage tanks.
Dragon LNG received its first cargo in July 2009.
Shell and Petronas have 50 percent capacity rights at the facility, each. The Malaysian company sold its 50 percent share in the facility to Ancala in 2019, but it kept a long-term throughput agreement with the terminal.
Dragon Energy, a unit of Dragon LNG Group Limited, has also developed a solar farm at the facility and is developing additional renewable power projects at the site.
VTTI’s LNG growth
Dragon LNG is VTTI’s second announced investment into LNG regasification terminals, following a deal earlier this year to acquire a 70 percent equity stake in Adriatic LNG, Italy.
VTTI said it expects to close this deal by end of 2024.
Besides this, VTTI joined forces with FSRU player Hoegh LNG in December last year to develop a new LNG import facility in the Netherlands.
The terminal will be based on a floating storage regasification unit (FSRU), which in time, plans to transition from import of LNG to hydrogen.
As an energy infrastructure company with extensive storage industry experience, we are well-positioned to develop, operate, and manage LNG terminals worldwide,” Guy Moeyens, CEO of VTTI said.
“We are looking forward to work together with Shell to ensure that Dragon LNG continues to operate in a safe and reliable manner while working towards accelerating its decarbonization and growth path,” he said.