VTTI, an energy storage and infrastructure developer owned by IFM Investors and Abu Dhabi National Oil Company and energy and commodities firm Vitol, is acquiring Ancala’s 50% stake in Dragon LNG.
The other 50% interest in Dragon LNG, the liquefied natural gas (LNG) regasification terminal in Milford Haven, Wales, is held by energy and petrochemical company Shell which will remain a shareholder following the transaction.
Dragon LNG is the owner of an onshore import terminal for the supply of LNG to the UK market. The company’s regasification terminal – one of the three LNG terminals in the UK – consists of LNG receiving, storage, reliquefication, regasification and send-out facilities.
Guy Moeyens, CEO of VTTI, said: ‘’As part of VTTI’s Strategy 2028, we are committed to expanding and enhancing LNG regasification infrastructure globally. Our aim is that half of our portfolio will be in transitional and sustainable energy sources by 2028.
“Following the recent agreement in Italy to acquire a 70% equity stake in Adriatic LNG in Italy and the ongoing development of a new LNG import facility in Vlissingen in the Netherlands, this acquisition reflects our commitment to diversify into LNG as a transitional energy source.”
Infrastructure manager Ancala acquired its 50% interest in Dragon LNG in 2019.
Ancala said the transaction marks its sixth exit from its first flagship infrastructure fund, without disclosing the financial terms of the transaction.
Lee Mellor, partner at Ancala, said: “Dragon has been another successful investment for Ancala and evidences our proactive approach to create value whilst delivering downside protection for our investors.
“Our investment thesis was based upon the growing importance of LNG to the UK’s energy mix and in delivering further improvements to the site’s operations and to Dragon’s sustainability journey.”
Simon Ames, managing director at Dragon LNG, said: “The Ancala team has been a valued partner and played a critical role in our work to enhance our terminal operations and accelerate our energy transition strategy.
“They have brought fresh thinking to unlock new opportunities and make improvements across the business.”
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