Energy Capital Partners and Centrica Acquire Grain LNG for £1.5 Billion

Energy Capital Partners (ECP), in partnership with Centrica plc, has acquired the Isle of Grain liquified natural gas terminal, known as Grain LNG, for an enterprise value of £1.5 billion from National Grid group. Grain LNG plays a crucial role in ensuring energy security in the UK, offering key LNG import/export, regasification, and gas storage services. This investment aligns with Centrica's strategy of investing in assets supporting the energy transition while delivering predictable long-term cash flows. The terminal is anticipated to offer significant efficiencies and opportunities for further developments, such as a combined heat and power plant and hydrogen facilities. ECP and Centrica each hold a 50% stake in the terminal, with Centrica investing approximately £200 million alongside non-recourse project financing. The venture aims to provide strong asset returns, with unlevered and equity IRR expectations of around 9% and over 14%, respectively. The project's financial underpinning aligns with Centrica's target of £1.6 billion EBITDA by 2028, with their anticipated share of EBITDA around £100 million per annum. This acquisition reflects ECP's and Centrica's commitment to optimizing LNG infrastructure while contributing to the energy transition initiatives.