Energy Capital Partners, a leading investment firm in the energy transition infrastructure sector, along with its 50/50 joint venture partner Centrica plc, has announced the completion of the Grain LNG acquisition from National Grid for an enterprise value of approximately £1.5 billion.
Matt Delaney, partner at ECP, said: “We are thrilled to partner with Centrica, who brings a wealth of knowledge and experience in the UK energy markets, as we execute our joint vision to enhance this world-class asset, expand our customer base, and set up Grain LNG for success for decades to come. With the UK and Europe’s growing need for dependable LNG supply, Grain LNG is uniquely positioned to deliver secure, affordable energy. This investment reflects ECP’s long-term commitment to supporting the energy transition by investing in strategic assets that deliver both reliability and sustainability.”
Slaughter and May acted as legal adviser to Centrica. Latham & Watkins served as legal adviser to ECP and to Garden Bidco Limited as purchaser.
About Grain LNG
Grain LNG is Europe’s largest LNG regasification terminal and is located at Isle of Grain, to the east of London. The core service is the provision of LNG storage and regasification capacity to primarily strong investment-grade customers under long-term, inflation-linked capacity contracts. The terminal has annual regasification capacity of 21.7 bcm and tank storage capacity of 1,000,000 cubic metres.
Grain is currently undergoing an expansion of 5.3 bcm additional regasification capacity and an additional 200,000 cubic metres of storage capacity. After completion of the ongoing expansion of the site, it will be able to provide up to a third of the UK’s gas demand. Grain also offers additional services such as ship reloading, transshipment and road tanker loading.
Long-Term Contract Portfolio
Grain is 100 percent contracted until 2029, more than 70 percent contracted until 2038 and more than 50 percent contracted to 2045. It is envisaged that future capacity auctions will be held on an arm’s length basis in accordance with current regulated third-party access requirements. Grain’s strategic location east of London offers efficient loading and storage capabilities and advantaged access to UK markets.
For more information visit www.ecpgp.com
