Centrica, the company behind British Gas, is in exclusive discussions to acquire the UK’s largest liquefied natural gas (LNG) import terminal from National Grid for about £1.5 billion. This strategic move is part of National Grid’s plan to concentrate on its core electricity networks.
Centrica has partnered with Energy Capital Partners, a notable investor in renewable energy, to pursue this deal. The announcement could be coming soon, signalling a significant shift in control of a key energy asset in the UK.
The Isle of Grain gas import terminal, located in the Thames estuary in Kent, has the capacity to process 15 million tonnes of gas annually, meeting around 20% of the UK’s gas needs. Its importance has increased as the UK and Europe have turned to global gas shipments, especially since the onset of the crisis following Russia’s invasion of Ukraine in early 2022.
National Grid announced plans to sell the terminal and its U.S. onshore renewable segment back in March 2024, initiating the formal sales process a month later. Previously, CKI Infrastructure Holdings was considered a leading candidate for the terminal, but they have since withdrawn from the bidding, as have Omers, one of Canada’s major pension funds.
Centrica, National Grid, Energy Capital Partners, Omers, and CKI have all refrained from making any comments on the ongoing negotiations.