Energy infrastructure VTTI has completed the acquisition of 50% of Dragon LNG and Dragon Energy Group Limited, also known as Dragon LNG, in the United Kingdom. The other 50% of the terminal is owned by Shell.
This move comes after the company’s announcement of the intention to acquire the stake in the terminal from leading infrastructure manager Ancala, communicated on May 8.
To remind, the Dragon LNG terminal in Waterston, Pembrokeshire is a joint venture partnership between Shell UK Ltd (50%) and VTTI (50%) and is one of three LNG terminals in the UK converting LNG to gas.
Dragon LNG is VTTI’s second announced investment into LNG regasification terminals, after the company’s intention to acquire a 70% equity stake in Adriatic LNG, Italy, which is expected to be closed by end of 2024.
Dragon LNG’s regasification terminal is one of three LNG terminals in the UK. It is located near Milford Haven in Wales, and consists of LNG receiving, storage, reliquefication, regasification and send-out facilities.
The facility can achieve maximum gas send out to the UK national transmission system of up to 9 billion cubic metres, supplying approximately 10 percent of the UK’s annual gas demand.
Dragon Energy Limited, a fully owned subsidiary of Dragon LNG Group Limited, has also developed a solar farm at the facility and is developing additional renewable power projects at the site in support of decarbonising scope 2 emissions at the LNG terminal.
Guy Moeyens, chief executive of VTTI, said: “Facilitating the import and distribution of LNG aligns with VTTI’s strategy to support the global energy transition and ensure security of supply. As an energy infrastructure company with extensive storage industry experience, we are well-positioned to develop, operate, and manage LNG terminals worldwide.”
Simon Ames, managing director of Dragon LNG, pointed out: “We are excited to welcome VTTI to Dragon LNG and Dragon Energy as a key shareholder alongside Shell. This partnership will strongly support our ongoing commitment to operational excellence and sustainable growth.”
