Ancala Partners has acquired a 50% stake in the Dragon LNG terminal in Wales, UK from Petronas LNG, a subsidiary of Malaysian national oil and gas company Petroliam Nasional Berhad (Petronas).

Financial terms of the deal were not disclosed by the UK-based infrastructure investment manager.

The Dragon LNG terminal, which has been operating since 2009, is a liquefied natural gas (LNG) regasification terminal in Waterston, Milford Haven, Pembrokeshire. The remaining 50% ownership in the Welsh LNG import terminal is held by Royal Dutch Shell.

Ancala Partners said that Petronas will continue to be a customer of the terminal as a counterparty to a long-term throughput agreement.

Ancala partner Lee Mellor said: “Dragon LNG is well placed to benefit from reducing UK gas storage capacity and maturing North Sea gas production. With revenues underpinned by a long-term availability-based throughput agreement with Shell and PETRONAS, the transaction represents an attractive addition to our portfolio and expands our midstream infrastructure activities.

“We look forward to working with Dragon LNG’s excellent team in continuing to grow and optimise performance of the terminal.”

Dragon LNG terminal details

The LNG terminal, which received its first cargo in July 2009, has a maximum gas send out rate of 9 billion cubic metres of gas per annum (bcma). The facility is made up of a jetty, regasification facilities and two 163,000m3 capacity storage tanks.

The LNG terminal also has gas export capabilities to meet peak gas demands in the UK through its supply to the National Transmission System (NTS). The boil-off gas from the storage tanks is used for on-site production of power and steam when there is no requirement of the pressurized and regasified liquefied gas to the NTS.

The Dragon LNG terminal is said to be capable of supplying up to 10% of the energy needs of the UK by delivering clean energy for millions of residential and commercial UK users. Recently, facilities at the LNG import terminal were improved through the addition of a reliquefaction plant, which was delivered by Wärtsilä.