VTTI to buy 50 percent stake in UK’s Dragon LNG terminal

Rotterdam-based storage terminal owner VTTI, co-owned by Vitol, IFM, and Adnoc, has entered into a deal with infrastructure manager, Ancala, to buy its 50 percent shareholding in the Dragon LNG terminal in the UK.

Besides Ancala, UK-based LNG giant Shell has a 50 percent stake in Dragon LNG.

VTTI did not provide the financial details of the deal in a statement issued on Wendesday.

Also, the transaction is subject to customary conditions and is expected to close in the third quarter of 2024, it said.

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 expansion

Prior to this move, VTTI joined forces with German asset manager IKAV to buy a majority stake in Italy’s Adriatic LNG terminal.

Upon closing of the transaction, the corporate capital of Adriatic LNG will be held by VTTI at 70 percent and Italy’s Snam at 30 percent.

“As part of VTTI’s strategy 2028, we are committed to expanding and enhancing LNG regasification infrastructure globally,” Guy Moeyens, CEO of VTTI, said.

“Our aim is that half of our portfolio will be in transitional and sustainable energy sources by 2028,” he said.

Following the recent agreement 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,” Moeyens said.

Most Popular

Excelerate in $700 million senior notes offering

US FSRU player Excelerate Energy aims to raise about $700 million via an offering of unsecured senior notes due 2030.

Adnoc, ENN seal 15-year LNG SPA

UAE’s Adnoc has signed a 15-year sales and purchase agreement with Chinese independent gas distributor ENN to supply the latter with LNG from its LNG terminal in Al Ruwais.

LNG shipping rates continue to decrease

Spot LNG freight shipping rates in both basins continued to decrease this week, while European prices increased compared to last week.

More News Like This

Venture Global launches Calcasieu Pass LNG commercial ops

US LNG exporter Venture Global LNG has launched commercial operations at its Calcasieu Pass LNG terminal in Louisiana, some 68 months from its final investment decision and 38 months after production start.

YPF expects more supermajors to join Argentina LNG project, CEO says

Argentina’s state-owned oil and gas company YPF expects more supermajors to become equity partners in the planned Argentina LNG project following a deal with Shell, according to CEO Horacio Marin.

Shell expects Q1 LNG trading results to be in line compared to previous quarter

LNG giant Shell expects trading and optimization results for its integrated gas business in the first quarter of this year to be in line compared with the fourth quarter of last year.

Peru LNG terminal sent five shipments in March

Peru LNG’s liquefaction plant at Pampa Melchorita has shipped five liquefied natural gas cargoes in March, one more than in the previous month.