UK’s Dragon LNG terminal offers capacity from September 2029

The UK’s Dragon LNG terminal in Milford Haven has invited market participants to express an interest in capacity at the facility from September 2029.

Dragon LNG announced on Thursday it has launched an expression of interest process for its 9 Bcm/year gas sendout capacity, as its long-term agreements expire in August 2029.

The EOI will run until Monday 1st July 2024.

Following a review of EOI responses, Dragon LNG will develop services to be offered to the market via a regulated auction process concluding in winter 2024/25, it said.

The core capacity offering comprises LNG reception, berthing, and unloading, LNG storage capacity, LNG regasification capacity, and also boil-off gas (BOG) reliquefaction capacity.

Dragon LNG is one of the three LNG terminals in the UK along South Hook and Grain LNG, and has been operational since 2009.

With over 300 cargoes received, Dragon LNG has handled up to 25 percent of the UK’s winter LNG imports in recent years, it said.

The facility, with its deep-water jetty, can accommodate vessels up to 217,500 cbm, and has two storage tanks with a combined capacity of 320,000 cbm.

With the ability to send out up to 298 GWh/d (or 25.6 mcm/d) of natural gas, Dragon LNG’s operational flexibility is enhanced by its boil-off gas reliquefaction plant.

VTTI to buy 50 percent

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

The transaction is subject to customary conditions and is expected to close in the third quarter of 2024.

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

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 its long-term throughput agreement with the terminal.

Dragon Energy, a unit of Dragon LNG, has also developed a solar farm at the facility and is developing additional renewable power projects at the site.

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