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Ancala exits Dragon LNG Group interests to VTTI

Independent infrastructure manager Ancala will sell its 50% interest in Dragon LNG Group, the owner and operator of a liquefied natural gas regasification terminal to VTTI, a global specialist in energy storage and developer of energy infrastructure.

Dragon’s terminal, which is located in Milford Haven, Wales, is one of three LNG terminals in the UK, and has a gas send out rate of up to 9bn cubic meters per annum.

Ancala completed the acquisition of a 50% interest in Dragon in 2019. The other 50% interest is held by Shell, who will remain as a shareholder following the transaction.

Since Ancala’s acquisition, the infrastructure manager has worked with the business to invest in the terminal, develop and execute its net zero strategy and enhance its operations, according to a press release. Dragon commissioned a reliquefaction plant which makes the terminal Europe’s only zero send-out regasification plant.

Dragon is also currently working in partnership with RWE, the largest power generator in Wales, on the construction of a Multi-Utility Services Transit, which is intended to connect industry across the Milford Haven Waterway.

The transaction, which is subject to customary conditions and is expected to close in Q3 2024, marks Ancala’s sixth exit from its first flagship infrastructure fund. Financial details have not been disclosed.

Ancala was advised by Travers Smith and Alvarez & Marsal.

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