VTTI completes acquisition of 50% of Dragon LNG
VTTI, an industry leader in energy infrastructure, has completed the acquisition of 50% of Dragon LNG Group Ltd. (Dragon LNG). The other 50% of the terminal is owned by Shell. This follows the announcement of the intention to acquire the stake in the terminal from leading infrastructure manager Ancala, communicated on May 8, 2024
As part of VTTI’s Strategy 2028, VTTI is building on its foundation as an energy storage and service terminal operator at key ports around the world, while investing in and developing additional energy infrastructure needed for the energy transition, including liquefied natural gas (LNG) regasification terminals, renewable natural gas (RNG) and waste to value production facilities, biofuel storage, and ammonia and hydrogen infrastructure.
VTTI’s aim is to accelerate growth, with 50% of the company’s earnings coming from transitional and sustainable energy sources by 2028.
Dragon LNG is VTTI’s second announced investment into LNG regasification terminals, following the announcement of the intention to acquire a 70% equity stake in Adriatic LNG, Italy made in April 2024, which is expected to be closed by end of 2024.
“Facilitating the import and distribution of LNG aligns with VTTI’s strategy to support the global energy transition and ensure security of supply. As an energy infrastructure company with extensive storage industry experience, we are well-positioned to develop, operate, and manage LNG terminals worldwide. We are looking forward to work together with Shell to ensure that Dragon LNG continues to operate in a safe and reliable manner while working towards accelerating its decarbonization and growth path,” says Guy Moeyens, CEO of VTTI.
Dragon LNG’s regasification terminal is one of three LNG terminals in the UK. It is located near Milford Haven in Wales, and consists of LNG receiving, storage, reliquefication, regasification and send-out facilities. The facility can achieve maximum gas send out to the UK national transmission system of up to 9 Bm3, supplying approximately 10% of the UK’s annual gas demand.
Dragon Energy Ltd., a fully owned subsidiary of Dragon LNG Group Ltd., has also developed a solar farm at the facility and is developing additional renewable power projects at the site in support of decarbonizing Scope 2 emissions at the LNG terminal. It has also recently announced the Milford Haven CO2 project, which will be done in collaboration with RWE Pembroke Net Zero Centre, exploring carbon capture, pipeline transfer, liquefaction, temporary storage and ship loading to enable CO2 shipping from a new Dragon jetty via non-pipeline transport to sequestration sites around the UK.
“We are excited to welcome VTTI to Dragon LNG and Dragon Energy as a key shareholder alongside Shell. This partnership will strongly support our ongoing commitment to operational excellence and sustainable growth. By integrating VTTI’s expertise in energy infrastructure, we can look to further enhance the safety, reliability, and environmental performance of our terminal, whilst ensuring our customers continue to provide secure and flexible energy supply into the UK. I am tremendously excited for our future through the energy transition as we look to further decarbonize and build a brighter future for our employees, our business partners, and the community here in Milford Haven and throughout Wales,” says Simon Ames, Managing Director, Dragon LNG.
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