LONDON: National Grid plc (NG.L) said on Thursday it has agreed to sell its Grain LNG business to a consortium comprising Centrica plc and Energy Capital Partners LLC, part of Bridgepoint Group plc, for approximately £1.66 billion including a pre-completion dividend.
The sale marks a further step in National Grid’s strategy to streamline operations and concentrate on its core electricity and gas networks, following the divestment of its NG Renewables unit in May.
Grain LNG, the UK’s largest liquefied natural gas import terminal, is operated through two wholly owned subsidiaries—National Grid Grain LNG Limited and Thamesport Interchange Limited—and plays a key role in securing domestic gas supply under long-term contracts.
Completion of the transaction is subject to regulatory and governmental approvals, with National Grid expecting closure later this year.
“Today’s announcement of the sale of Grain LNG marks another successful step in delivering National Grid’s previously communicated strategy to streamline our business and focus on networks,” CEO John Pettigrew said in a statement.
National Grid, which operates across the UK and US, is investing heavily in grid upgrades, including the Great Grid Upgrade in Britain and the Upstate Upgrade in New York.