Following Hong Kong’s CKI pull out from buying the UK National Grid’s Grain LNG terminal and storage plant, UK energy company, Centrica has stepped in with Energy Capital Partners, in a deal worth £1.5 bill.
Grain upplied some 15% of the UK’s gas demand last year, but this is forecast to grow to about 60% by 2050.
After taking into account some £1.1 bill worth of project finance debts on Grain’s balance sheet, Centrica’s equity investment totals about £200 mill, the company confirmed.
National Grid, which operates most of the UK’s electricity grid, had been looking to sell the asset as part of broader efforts to offload parts of its portfolio to help fund investment plans.
Centrica CEO, Chris O’Shea, said: “The Isle of Grain terminal is a strategic asset that will support the UK’s energy security for many decades to come, keeping energy flowing reliably and affordably to households and businesses across the country as we transition to net zero.”
The acquisition is expected to be finalised during the last three months of this year, subject to regulatory approvals.
