Slaughter and May is advising Centrica plc (“Centrica”) on its joint acquisition of National Grid Grain LNG Limited and Thamesport Interchange Limited, which together comprise National Grid’s liquified natural gas terminal business at Isle of Grain (“LNG Grain”), in partnership with Energy Capital Partners LLP (“ECP”).
It is proposed that LNG Grain be acquired through a joint venture which is ultimately owned 50% by each of Centrica and ECP, for an enterprise value of £1.5 billion. After taking into account approximately £1.1 billion of project finance debt, Centrica’s 50% share of the total equity investment is expected to be approximately £200 million.
Grain LNG is Europe’s largest LNG regasification terminal and supports Centrica’s strategy of investing in critical energy infrastructure assets, aligned to the energy transition, that deliver attractive returns, regulated or contracted cash flows, and create future options across the Company’s broader portfolio.
The acquisition is expected to complete in the fourth quarter of this year.