Ancala Acquires 50% Stake in Dragon LNG

Infrastructure investment firm Ancala Partners has acquired a 50% interest in Dragon LNG regasification terminal located at Milford Haven, Wales. Ancala acquired the interest on behalf of its managed funds from Petronas LNG, a unit of Malaysian state Petronas, it said July 2 without offering financial details.

Dragon LNG is one of three LNG regasification terminals in the UK. The terminal has a gas send out rate to the UK’s National Transmission System of up to 9bn m³/yr. Facilities at the terminal were recently enhanced through commissioning of a reliquefication plant, 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,” Lee Mellor, partner, Ancala, said.

Petronas will continue to be a customer of Dragon LNG as a counterparty to a long-term throughput agreement with the terminal.