Ancala Partners has acquired a 50% interest in a Dragon LNG, a LNG regasification terminal in Milford Haven, Wales.
The independent infrastructure investment manager acquired the interest on behalf of managed funds from Petronas LNG.
Dragon LNG is one of three LNG regasification terminals in the UK. The terminal has a gas send out rate to the UK’s national transmission system for up to nine billion m3 per annum, providing clean and reliable energy for millions of commercial and residential UK users.
Facilities at the terminal were recently enhanced through commissioning of a reliquification plant. Petronas will continue to be a customer of Dragon LNG as a counterparty to a long-term throughput agreement with the terminal.
Lee Mellor, partner, Ancala, says: ‘Dragon LNG is well placed to benefit from reducing UK gas storage capacity and maturing North Sea gas production. With revenues underpinned by a long-term availability-based throughput agreement with Shell and Petronas, the transaction represents an attractive addition to our portfolio and expands our midstream infrastructure activities.’