It is one of just three terminals in the UK and forms a critical part of the nation’s energy infrastructure, providing a link between the UK and its overseas gas suppliers for a vital source of energy.
The terminal has a gas send out rate of up to 9bn cubic meters per annum, enough to supply 10% of the UK’s gas need. The majority of its revenues are generated through availability payments under a throughput agreement which offers long-term and stable cashflows.
Ancala invested in Dragon in 2019 as part of a joint venture with Shell. We secured the opportunity through our deep experience across traditional energy and were seen by the vendor as a reliable and trusted owner that could also deliver complex carveouts from large corporates.
During our period of ownership, we helped the business to further optimise its operations and, through Dragon Energy, deliver decarbonisation projects such as installing and operating a 10MWp solar park. The park reduced Dragon’s Scope 2 carbon emissions by circa 2,500 tonnes per year and also provides renewable energy to local businesses. In addition, Dragon submitted a planning application for a 13MWp wind farm.
Dragon is also working in partnership with RWE, the largest power generator in Wales, to explore the construction of a Multi-Utility Services Transit which would reduce carbon emissions by connecting industry across the Milford Haven Waterway.