Ancala Partners, an independent infrastructure investment manager, has acquired a 50 percent interest in Dragon LNG, a liquefied natural gas regasification terminal located at Milford Haven, Wales.
Ancala acquired the interest on behalf of its managed funds from Petronas LNG Sdn. Bhd., a subsidiary of Malaysia-based Petroliam Nasional Berhad (Petronas). Transaction terms have not been disclosed.
“Dragon LNG is well placed to benefit from reducing U.K. gas storage capacity and maturing North Sea gas production,” said Lee Mellor, partner at Ancala. “With revenues underpinned by a long-term availability-based throughput agreement with Shell and Petronas, the transaction represents an attractive addition to our portfolio and expands our midstream infrastructure activities.”
Dragon LNG is one of three LNG regasification terminals in the United Kingdom. The terminal has a gas send-out rate to the United Kingdom’s National Transmission System of up to 9 billion cubic meters per year, providing clean and reliable energy for millions of commercial and residential U.K. users. Facilities at the terminal were recently enhanced through commissioning of a reliquification plant.
Petronas will continue to be a customer of Dragon LNG as a counterparty to a long-term throughput agreement with the terminal.
