Centrica to acquire 50% of UK’s largest LNG terminal in £1.5 billion deal

Centrica, owner of British Gas, will take a 50% stake in the Isle of Grain liquefied natural gas (LNG) terminal from National Grid, in partnership with US investment firm Energy Capital Partners (ECP). The deal values the facility at £1.5 billion, with Centrica contributing around £200 million in equity. The remainder will be met through roughly £1.1 billion of non-recourse project financing.

The Isle of Grain terminal in Kent can process up to 15 million tonnes of LNG a year, about 20% of the UK’s annual gas demand, making it a critical part of the country’s energy infrastructure.

Centrica says the terminal’s capacity is fully contracted until 2029, over 70% contracted to 2038, and more than half booked until 2045. The company expects the acquisition to deliver an unlevered internal rate of return of around 9%, with equity returns above 14%. From 2026 to 2028, Centrica’s share of EBITDA is projected to average £100 million per year, with cash distributions of about £20 million annually, supporting its £1.6 billion end-2028 EBITDA target.

Chief executive Chris O’Shea described the Isle of Grain as a strategic national asset that will strengthen Britain’s energy security for decades, while supporting the transition to net zero. ECP said the facility’s role in LNG imports would be increasingly important as the energy system evolves.

The move aligns with Centrica’s strategy to increase its holdings in regulated or contracted infrastructure, adding to assets such as the Rough gas storage site and its 15% stake in the Sizewell C nuclear project.

The transaction will be completed via a jointly controlled entity with ECP, subject to regulatory and national security clearances. Completion is expected in the fourth quarter of 2025.