National Grid to sell liquefied natural gas terminal
National Grid has agreed to sell Europe’s largest liquefied natural gas terminal to British Gas owner Centrica and Energy Capital Partners, in a deal worth £1.5bn.
The two firms will be acquiring the Isle of Grain terminal in Kent.
The terminal imports and stores gas from around the world, and connects it to the European energy market.
Its customers include Centrica, Shell, and Qatar Energy.
It supplied some 15 per cent of the UK’s gas demand last year, but this is forecast to swell to about 60 per cent by 2050.
After taking into account some £1.1bn worth of project finance debts on Grain’s balance sheet, Centrica’s equity investment totals about £200m, it said.
National Grid, which runs much of Britain’s electricity grid, had been looking to sell the asset as part of broader efforts to offload parts of its portfolio to help fund investment plans.
The acquisition comes shortly after Centrica announced it was investing £1.3bn for a 15 per cent stake in the new Sizewell C nuclear power plant in Suffolk.
The acquisition is expected to complete during the final three months of 2025, subject to it being approved by regulators.
Chris O'Shea, Group Chief Executive, Centrica plc, said: “The Isle of Grain terminal is a strategic asset that will support the UK’s energy security for many decades to come, keeping energy flowing reliably and affordably to households and businesses across the country as we transition to net zero.
"That’s why we are so pleased to be investing, continuing Centrica's pivot towards long-term, predictable infrastructure cash flows, underpinning our medium-term guidance and creating valuable future options.
“We are delighted to be partnering with ECP, a highly experienced investor in energy infrastructure around the world.
"We look forward to working with them and Grain LNG’s management team to deliver on the full potential of this unique asset for customers and the country.
“Our decision to commit £3bn of capital in both Sizewell C and the Isle of Grain demonstrates the attractiveness of the UK as an investment location underpinned by supportive government investment policies.”
Tyler Reeder, President and Managing Partner, ECP, said: “As one of the largest private owners of natural gas generation and infrastructure assets in the U.S., ECP has long understood that natural gas is indispensable to keeping grids resilient and advancing the transition to a lower-carbon future. With the emergence of the U.S. as the global leader in low-cost LNG supply and the growing need for reliable natural gas supply across the UK and Europe, we believe Grain LNG will increasingly be relied upon as critical infrastructure to deliver dependable energy to local markets.”