Centrica, Energy Capital Partners to buy National Grid’s LNG terminal for $2 billion.

British Gas owner Centrica will jointly buy National Grid’s Grain LNG terminal with U.S.-based infrastructure investor Energy Capital Partners (ECP), it said on Thursday, for an enterprise value of about 1.5 billion pounds ($2.04 billion).

The LNG terminal, owned and operated by a National Grid subsidiary, is located on the Isle of Grain in Kent, in southeast England. It is the largest LNG import terminal in Europe by tank capacity and one of the largest in the world. 

LNG has become a vital source of gas for Europe, especially after the Russia-Ukraine conflict and as the subsequent Western sanctions on Russia disrupted energy markets. The resulting price surge continues to weigh on British consumers.

Centrica said its 50% share of the equity investment in the terminal was about 200 million pounds, with roughly 1.1 billion pounds of the total deal value being debt related to the project.

The agreement, first reported by the Financial Times on Wednesday, follows Centrica’s bid in July to hold a 15% stake in the planned Sizewell C nuclear project.

ECP is one of the largest private owners of natural gas generation and infrastructure assets in the U.S., which has become a major export hub for LNG.

Source: Globalbankingandfinance