National Grid PLC (LSE:NG.) has agreed to sell its Grain LNG business to a consortium comprising Centrica and Energy Capital Partners (ECP), part of Bridgepoint Group, for £1.66 billion, including a pre-completion dividend.
The deal, subject to regulatory and government approvals, is expected to complete later this year.
Grain LNG, located on the Isle of Grain in Kent, is the UK’s largest liquefied natural gas import terminal.
It operates under long-term “take or pay” contracts, ensuring steady income regardless of actual usage, and plays a key role in securing the UK’s gas supply.
Chief executive John Pettigrew said the sale marked “another successful step” in streamlining the business and focusing on electricity and gas networks, following the disposal of National Grid Renewables in May.
The transaction fits with the group’s wider strategy to channel capital into network infrastructure projects, including the Great Grid Upgrade in the UK and large-scale modernisation programmes in the US.
For Centrica, the acquisition strengthens its infrastructure portfolio alongside assets such as the Rough gas storage facility, while ECP brings specialist investment expertise in energy transition assets.