VTTI, an industry leader in energy infrastructure, has completed the acquisition of 50% of Dragon LNG Group Limited (also known as Dragon LNG), according to the company’s release. The other 50% of the terminal is owned by Shell. This follows the announcement of the intention to acquire the stake in the terminal from leading infrastructure manager Ancala, communicated on May 8, 2024.
As part of VTTI’s Strategy 2028, VTTI is building on its foundation as an energy storage and service terminal operator at key ports around the world, while investing in and developing additional energy infrastructure needed for the energy transition, including liquefied natural gas (LNG) regasification terminals, renewable natural gas (RNG) and waste to value production facilities, biofuel storage and ammonia & hydrogen infrastructure.
VTTI’s aim is to accelerate growth, with 50% of the company’s earnings coming from transitional and sustainable energy sources by 2028.
Dragon LNG is VTTI’s second announced investment into LNG regasification terminals, following the announcement of the intention to acquire a 70% equity stake in Adriatic LNG, Italy made in April 2024, which is expected to be closed by end of 2024.
Dragon LNG’s regasification terminal is one of three LNG terminals in the UK. It is located near Milford Haven in Wales, and consists of LNG receiving, storage, reliquefication, regasification and send-out facilities. The facility can achieve maximum gas send out to the UK national transmission system of up to 9 billion cubic metres, supplying approximately 10 percent of the UK’s annual gas demand.
Dragon Energy Limited, a fully owned subsidiary of Dragon LNG Group Limited, has also developed a solar farm at the facility and is developing additional renewable power projects at the site in support of decarbonising scope 2 emissions at the LNG terminal. They have also recently announced the Milford Haven CO2 project, which will be done in collaboration with RWE Pembroke Net Zero Centre, exploring carbon capture, pipeline transfer, liquefaction, temporary storage, and ship loading to enable CO2 shipping from a new Dragon jetty via non-pipeline transport to sequestration sites around the UK.
For over 19 years, VTTI has been a global leader in independent energy storage and now develops critical energy infrastructure needed to move towards a carbon neutral future. Fueled by its purpose, ‘Energy to Move Tomorrow,’ the company safely provides and expands access to essential energy, including biofuels, chemicals, gasses, and other energy derived products and accelerates the transition to sustainable sources for customers and partners. VTTI’s headquarter is in Rotterdam, the Netherlands, and the company is owned by Vitol, IFM Investors and ADNOC.
The Dragon LNG terminal in Waterston, Pembrokeshire is a joint venture partnership between Shell UK Ltd (50%) and VTTI (50%) and is one of three LNG terminals in the UK converting LNG to gas. With its re-liquefaction plant, Dragon has the flexibility to provide its customers with continuous, intermittent or zero gas send-out. Together with the other Pembrokeshire LNG terminal, they supply 25% of the UK gas supply.
Source: Port News
