UK company Centrica and US private capital group Energy Capital Partners ( ECP ) are acquiring the Isle of Grain liquified natural gas terminal ( Grain LNG ) from the UK’s National Grid group for an enterprise value of £1.5 billion ( US$2.03 billion )

After taking into account £1.1 billion of new non-recourse project finance debt, Centrica’s 50% share of the equity investment is approximately £200 million.

Grain LNG provides critical LNG import/export, regasification and rapid response gas storage capacity to balance the energy system.

London Stock Exchange-listed Centrica, which is a constituent of the FTSE 100 index, says the deal aligns with its strategy of investing in regulated and contracted assets supporting the energy transition, and delivering predictable long-term, inflation-linked cash flows. There are also opportunities for efficiencies to create additional near-term value, it adds, and future development options, including a combined heat and power plant, bunkering, hydrogen and ammonia.

ECP specializes in electricity and sustainable infrastructure, and it has raised more than US$32 billion in capital commitments. In August 2024, ECP combined with Bridgepoint Group, creating one of the world’s leading quoted private asset growth investors, with a combined platform across North American and Europe focused on the middle market and spaning private equity, infrastructure and credit.

“As one of the largest private owners of natural gas generation and infrastructure assets in the US, ECP has long understood that natural gas is indispensable to keeping grids resilient and advancing the transition to a lower-carbon future,” points out Tyler Reeder, ECP’s president and managing partner. “With the emergence of the US as the global leader in low-cost LNG supply and the growing need for reliable natural gas supply across the UK and Europe, we believe Grain LNG will increasingly be relied upon as critical infrastructure to deliver dependable energy to local markets.”