National Grid to Sell LNG Terminal to Centrica Consortium in $2 Billion Deal

National Grid has agreed to sell its UK-based LNG import terminal, Grain LNG, to a consortium of Centrica and Energy Capital Partners for £1.5 billion ($2.04 billion). The deal includes a £1.66 billion sale price, with £1.1 billion of new project finance debt. Centrica will own 50% of the business, with expected earnings before interest, taxes, depreciation and amortization of £100 million per year. National Grid will use the sale to focus on its electricity networks and invest in major infrastructure projects.

National Grid has agreed to sell its UK-based LNG import terminal, Grain LNG, to a consortium of Centrica and Energy Capital Partners for £1.5 billion ($2.04 billion). The deal includes a £1.66 billion sale price, with £1.1 billion of new project finance debt. Centrica will own 50% of the business, with expected earnings before interest, taxes, depreciation and amortization (EBITDA) of £100 million per year. National Grid will use the sale to focus on its electricity networks and invest in major infrastructure projects.

The Grain LNG terminal, located on the Isle of Grain in Kent, is one of the largest LNG import terminals in Europe by tank capacity. The sale is part of National Grid's strategy to divest from energy production and concentrate on its core businesses of electricity and gas networks. Centrica, a major player in the UK energy sector, will benefit from the strategic asset as it seeks to bolster its control over the country's energy supplies.

The transaction is expected to close in the fourth quarter of 2025, pending regulatory and national security approvals. Centrica has committed to investing £200 million in the terminal, with the remaining £1.1 billion being debt-related project finance. The deal aligns with Centrica's broader strategy to support the UK's energy security and transition to net-zero emissions.

National Grid's sale of the Grain LNG terminal is a significant step in the company's efforts to streamline its operations and invest in critical infrastructure projects. The proceeds from the sale will be used to fund these initiatives, which are essential for maintaining the reliability and efficiency of the UK's energy grid.

References:
[1] https://www.marketscreener.com/news/national-grid-to-sell-lng-terminal-to-centrica-bridgepoint-for-2-25-billion-ce7c51d8de8df52d
[2] https://www.reuters.com/business/energy/centrica-energy-capital-partners-buy-national-grids-lng-terminal-2-bln-2025-08-14/
[3] https://seekingalpha.com/news/4485129-centrica-and-energy-capital-partners-to-acquire-grain-lng-terminal-for-2-billion
[4] https://www.bbc.com/news/articles/cp37d4kn18wo.amp
[5] https://barristerng.com/fec-approves-%E2%82%A613bn-and-34m-power-sector-reforms-to-modernize-nigerias-ageing-national-grid-and-enhance-industrial-power-supply/