It is one of just three LNG terminals in the UK and forms a critical part of the nation’s energy infrastructure.
The terminal has a gas send out rate of up to 9bn cubic meters per annum, enough to supply 10% of the UK’s annual demand for gas.
As an integral part of the UK’s gas infrastructure, Ancala helped the business to consider how to decarbonise its operational carbon emissions and provide new services for a decarbonising society. The company targets achieving net zero at its operations by 2029.
During our five-year period of ownership, Ancala worked with the management team to develop and implement a comprehensive energy transition strategy to help the business reach its net zero target. As part of this, Ancala helped the business review and prioritise the procurement and generation of renewable energy at its sites.
Ancala formed Dragon Energy, a subsidiary company, set up to produce renewable energy from local sources to power the operations of Dragon LNG.
Dragon Energy since identified a location to develop a 10MW solar farm, which includes 18,500 solar panels. Ancala helped Dragon secure planning permission and supported the financing of the project. The solar park became operational in 2023 and provides almost 10% of the terminal’s electricity needs, reducing its Scope 2 carbon emissions by around 2,500 tonnes per year. It also supplies energy to neighbouring businesses.
Ancala also worked with the team on a planning application for the installation of a 13MWp wind farm and the installation of battery storage solutions. Once the wind turbines are built, these are expected to produce, on average, around 43 GWh of electricity.
In 2023, Dragon LNG announced its support for Net Zero Industry Wales’ plans to develop a carbon capture programme for the South Wales shipping industry which can then be utilised in other UK regions. In partnership with RWE, Wales’ largest producer of power, Dragon is exploring the development of a Multi-Utility Service Transit infrastructure project to connect the industry across the Milford Haven Waterway. This would significantly support the UK’s industrial decarbonisation challenge.
Alongside its decarbonisation activity, Dragon is a core sponsor of The Darwin Experience, which encourages young people to pursue education in STEM subjects. With Dragon’s support, this educational programme delivers free STEM field trips and workshops to young people across Pembrokeshire in Wales. To date, Dragon has helped the programme to provide experiences to more 70,000 young people.