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Natural gas

Centrica and Energy Capital Partners Acquire Isle of Grain Liquefied Natural Gas Terminal from National Grid

Strategic Insights

— 1 min read

The UK's largest liquified natural gas import terminal, Isle of Grain, has been sold to Centrica and Energy Capital Partners by National Grid for an enterprise value of GBP1.5 billion. The terminal, with a capacity to process 15 million tonnes per year of gas, is a strategic asset that will support the UK's energy security for decades to come. The deal confirms Centrica's commitment to investing in the UK energy sector, with the company also announcing a 15% stake in the Sizewell C nuclear power plant. The acquisition is expected to generate GBP100 million in earnings before interest, tax, depreciation, and amortisation per year for Centrica, with around GBP20 million in cash distributions.

Key Takeaways:

  • Centrica and Energy Capital Partners have agreed to buy the Isle of Grain liquefied natural gas terminal from National Grid for an enterprise value of GBP1.5 billion.
  • The equity investment is GBP200 million for each of Centrica and ECP, with GBP1.1 billion being new non-recourse project finance debt.
  • The Isle of Grain terminal has a capacity to process 15 million tonnes per year of gas, which is about 20% of the UK's demand.
  • Centrica already owns the Rough gas storage site off the coast of Yorkshire and has taken a 15% stake in the Sizewell C nuclear power plant.
  • The acquisition is expected to generate GBP100 million in earnings before interest, tax, depreciation, and amortisation per year for Centrica, with around GBP20 million in cash distributions.
  • The Grain terminal recorded GBP178 million in earnings before interest, tax, depreciation, and amortisation on GBP299 million in revenue in 2024.
  • The deal confirms Centrica's commitment to investing in the UK energy sector, with Gerry Whelan, Director at Energy Capital Partners, highlighting the strategic importance of the terminal.

Statistics:

  • Enterprise value of the Isle of Grain terminal: GBP1.5 billion
  • Equity investment by Centrica and ECP: GBP400 million (GBP200 million each)
  • Capacity of the Isle of Grain terminal: 15 million tonnes per year
  • Share of Ebitda from the terminal by Centrica: GBP100 million per year
  • Cash distributions from the terminal by Centrica: around GBP20 million per year
  • Ebitda recorded by the Grain terminal in 2024: GBP178 million
  • Revenue recorded by the Grain terminal in 2024: GBP299 million

Sources:

  • "Alliance News" report, 2025
  • National Grid press release
  • Centrica press release
  • Financial Times report, 2025

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