Ashurst advises VTTI on acquisition of 50% stake in Dragon LNG

Global law firm Ashurst has advised VTTI, a global leader in energy storage and developer of energy infrastructure, on its agreement with leading infrastructure manager, Ancala, to acquire its 50% shareholding of Dragon LNG Group Limited (also known as Dragon LNG), the owner of a major onshore import terminal for the supply of liquefied natural gas ('LNG') to the UK market.

Dragon LNG’s regasification terminal is one of the three LNG terminals in the UK 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.

VTTI has a long-term strategic view on the terminal, furthering the opportunities for decarbonisation of the regasification process and continuing to provide safe and secure, long-term access to the UK gas market.

The transaction is subject to customary conditions and is expected to close in Q3 2024.

The Ashurst team was led by partner Michael Burns, assisted by senior associates Louise Chan, Grafton Cederburg and associate Roshni Mehra.