Centrica and Energy Capital Partners to acquire Grain LNG terminal for $2 billion

British Gas owner Centrica (OTCPK:CPYYF [https://seekingalpha.com/symbol/CPYYF]) will be jointly buying National Grid's Grain LNG terminal with U.S.-based Energy Capital Partners for an enterprise value of about 1.5 billion pounds ($2.04 billion), it said on Thursday.

The Isle of Grain LNG terminal, operated by a subsidiary of National Grid, is situated in Kent, England. It holds the distinction of being the largest LNG import terminal in Europe by tank capacity, and ranks among the largest globally.

Centrica (OTCPK:CPYYF [https://seekingalpha.com/symbol/CPYYF]) said its 50% share of the equity investment in the terminal was about 200 million pounds, with roughly 1.1 billion pounds of the total deal value being debt related to the project.

The deal underpins delivery of a £1.6 billion end-2028 EBITDA target: Centrica’s share of EBITDA is expected to be about £100 million per annum, and cash distributions are expected to be around £20 million on average per annum for 2026-2028.

“The Isle of Grain terminal is a strategic asset that will support the UK’s energy security for many decades to come, keeping energy flowing reliably and affordably to households and businesses across the country as we transition to net zero," Chris O'Shea, Group Chief Executive of Centrica said.

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