Energy Capital Partners and Centrica have finalized their previously announced acquisition of Grain LNG from National Grid, valued at approximately £1.5 billion. The deal gives both companies joint ownership of one of Europe’s most strategically important energy infrastructure assets and further strengthens the UK’s long-term gas security.
The acquisition marks a significant milestone for ECP as it continues expanding its portfolio of critical energy transition infrastructure. Centrica, which serves millions of customers across the UK and Ireland, brings decades of operational and market expertise as the parties move forward with plans to optimize and grow the Grain LNG platform.
Grain LNG, located at the Isle of Grain east of London, is Europe’s largest LNG regasification terminal. Its core business centers on providing long-term storage and regasification capacity to investment-grade counterparties under inflation-linked contracts. The site currently offers 21.7 bcm of annual regasification capacity and 1,000,000 cubic meters of tank storage, and it is undergoing a significant expansion that will add 5.3 bcm of additional regasification capacity and 200,000 cubic meters of new storage. Upon completion, the terminal will be capable of meeting up to one-third of the UK’s total gas demand.
The asset is fully contracted through 2029, with more than 70% contracted through 2038 and over 50% contracted through 2045. Future capacity auctions are expected to take place on an arm’s length basis in line with regulated third-party access rules. The terminal’s location east of London offers efficient access to UK markets and supports additional services including ship reloading, transshipment, and road tanker loading.
Support: Legal advisers on the deal included Slaughter and May for Centrica, and Latham and Watkins for ECP and Garden Bidco Limited as purchaser.
KEY QUOTES:
“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.”
Matt Delaney, Partner, ECP
