The Dragon LNG (liquefied natural gas) terminal in Pembrokeshire has been partly acquired in a multi-million pound deal.
Ancala Partners, the independent infrastructure investment manager, has taken on a 50% interest in the regasification terminal located at Milford Haven from Patronas.
The exact value of the deal, on behalf of Ancala's managed funds, has not been disclosed.
However, according to latest accounts, Dragon LNG Group had total equity in the year to end of December of 2018, of £293m.
During the year it generated revenues of £69m with a pre-tax profit of £14.5m. It also made shareholder payments of £36.4m.
Shell remains as a 50% equity holder in the terminal.
Dragon LNG is one of three LNG regasification terminals in the UK.
It has a gas send out rate to the UK’s National Transmission System of up to 9 billion cubic metres per annum, providing energy for millions of commercial and domestic customers. It was recently boosted with commissioning of a reliquification plant.
Malaysian-owned Petronas will continue to be a customer of Dragon LNG as a counter party to a long-term throughput agreement with the terminal.
Lee Mellor, partner with Ancala, said:“Dragon LNG is well placed to benefit from reducing UK gas storage capacity and maturing North Sea gas production.
"With revenues underpinned by a long-term availability-based throughput agreement with Shell and Petrona, the transaction represents an attractive addition to our portfolio and expands our midstream infrastructure activities.
"We look forward to working with Dragon LNG’s excellent team in am in continuing to grow and optimise performance of the terminal.”
The terminal received its first cargo of LNG in July, 2009."
Dragon LNG has a provision of £28.3m for the required decommissioning of the terminal at the end of its life, which is estimated to be in 20 years time.
