National Grid to Sell LNG Terminal to Centrica, Bridgepoint for $2.25 Billion

By Joe Hoppe

National Grid said it would sell the U.K.'s largest liquefied natural gas import terminal to a consortium consisting of Centrica and Bridgepoint Group's Energy Capital Partners for around 1.66 billion pounds ($2.25 billion).

Centrica and Bridgepoint will each own 50% of the Grain LNG business, with completion expected in the fourth quarter of the year.

Grain LNG comprises two National Grid subsidiaries, which own and operate the import terminal on the Isle of Grain on the southeast coast of England, under-long term contracts.

British energy-infrastructure company National Grid said the total proceeds include a pre-completion dividend and would be subject to certain completion adjustments.

Centrica said that after taking into account around 1.1 billion pounds of new project finance debt, its 50% share of the investment is around 200 million pounds, funded from existing cash.

The U.K energy company said it expects its share of earnings before interest, taxes, depreciation and amortization from Grain LNG to be around 100 million pounds a year, underpinning its targeted delivery of 1.6 billion pounds in Ebitda by the end of 2028. Cash distributions are expected to be around 20 million pounds a year on average between 2026 and 2028.

Write to Joe Hoppe at joseph.hoppe@wsj.com