Dragon LNG launches a Notice for Auction for capacity available from August 2029
Dragon LNG, a Liquified Natural Gas (LNG) receiving terminal in South-West Wales, UK, has launched a binding capacity auction for approximately 9.3 billion cubic meters per year of firm regasification capacity, available from 26 August 2029. This represents one of few opportunities to secure long-term primary LNG regasification capacity in Northwest Europe, within the liquid and flexible UK gas market.
The terminal has been operational since 2009 and has capacity to supply around 10% of the UK’s natural gas needs. The terminal is owned by Shell (50%) and VTTI (50%), and there are contracts in place governing the use of the capacity rights until 26 August 2029. Dragon is pleased to invite market participants to bid for future regasification capacity.
The product offer and auction process have been developed following extensive engagement with market participants and in accordance with Ofgem’s ‘Guidance on the regulated Third-Party Access regime for Liquified Natural Gas facilities’, ensuring a transparent and non-discriminatory process for remarketing capacity.
Dragon LNG is offering:
- A ‘Bundle’ model, with capacity available in tranches as small as circa 1.2 billion cubic metres per year (12,760 GWh per year).
- The opportunity for those with larger capacity requirements to secure anywhere between 50% and 100% of Dragon LNG’s capacity.
- Flexibility for customers to bid for any combination of small or large capacity tranches and different tenors, with capacity available for a minimum term of 10 years, starting 26 August 2029.
Simon Ames, Managing Director, Dragon LNG said: "Dragon LNG offers a prime opportunity to secure long-term, strategic and flexible LNG regasification capacity in the UK market. With a strong track record of safe and reliable operations since 2009, we are well positioned to support customers’ long-term supply and portfolio needs".
Next Steps. The Notice for Auction data room will be open starting Thursday 16 April 2026. Participants will have access to the binding 2029 Dragon LNG Throughput Agreement and supporting documentation to allow them to prepare and submit their bids by Monday 13 July 2026.
Dragon LNG invites companies interested in participating in the auction to contact the Dragon LNG team at capacity@dragonlng.com. Dragon LNG looks forward to continuing to engage with interested parties throughout the process.
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