Dragon LNG, a liquefied natural gas receiving terminal located in South-West Wales, UK, has launched a binding capacity auction for approximately 9.3 billion cubic metres per year of firm regasification capacity, available from 26 August 2029.
The auction represents one of few opportunities to secure long-term primary LNG regasification capacity in Northwest Europe within the liquid and flexible UK gas market. The terminal has been operational since 2009 and has the capacity to supply around 10 percent of the UK’s natural gas needs. It is jointly owned by Shell (50 percent) and VTTI (50 percent), with existing contracts governing the use of capacity rights until 26 August 2029.
Image source: Dragon LNG
The product offer and auction process were developed following extensive engagement with market participants and in accordance with Ofgem’s guidance on the regulated Third-Party Access regime for LNG facilities, ensuring a transparent and non-discriminatory remarketing process.
Dragon LNG’s capacity offering includes a Bundle model with capacity available in tranches as small as approximately 1.2 billion cubic metres per year (12,760 GWh per year), as well as the opportunity for those with larger requirements to secure between 50 percent and 100 percent of the terminal’s total capacity. Customers will also have flexibility to bid for any combination of capacity tranches and tenors, with a minimum term of 10 years commencing 26 August 2029.
Simon Ames, managing director of Dragon LNG, described the auction as a prime opportunity for market participants to secure long-term, strategic, and flexible LNG regasification capacity in the UK. He highlighted the terminal’s strong track record of safe and reliable operations since 2009 as a key foundation for supporting customers’ long-term supply and portfolio needs.
For more information visit www.dragonlng.co.uk
