Dragon LNG is a liquefied natural gas regasification terminal located in Milford Haven, Wales.

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.

A joint venture with a FTSE100 energy company

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.

A green approach to traditional energy

Since investing, we have 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 reduces Dragon’s Scope 2 carbon emissions by circa 2,500 tonnes per year and also provides renewable energy to local businesses. In addition, Dragon has 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.