Ancala Partners Acquires 50% Interest in Dragon LNG Terminal

Ancala Partners announced yesterday the acquisition of a 50% interest in Dragon LNG. Dragon LNG is a LNG regasification terminal located at Milford Haven, Wales. Ancala acquired the interest on behalf of its managed funds from PETRONAS. Transaction terms were not disclosed.

Dragon LNG has a send out rate to the UK’s National Transmission System of up to 9 billion cubic metres per annum. PETRONAS will continue to be a customer of Dragon LNG as a counterparty to a long-term throughput agreement with the terminal.

Lee Mellor, Partner, 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 PETRONAS, 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 continuing to grow and optimise performance of the terminal.”

Shell owns 50% of Dragon LNG.