National Grid has agreed to sell its Grain LNG business to a consortium of British Gas owner, Centrica, and Energy Capital Partners, which is part of Bridgepoint Group.

The proceeds of the transaction will total £1.66bn, National Grid has estimated, which includes a pre-completion dividend.

National Grid said the move to offload Grain LNG is “another important step” in delivering a previously communicated strategy to streamline its business and focus on networks, as announced in May 2024.

Grain LNG, comprising two wholly owned subsidiaries of National Grid, owns and operates the UK’s largest liquefied natural gas (LNG) importation terminal under long-term take or pay contracts.

National Grid is expecting the deal, which remains subject to customary regulatory approvals, to complete 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, and follows the completion of the sale of our NG Renewables business in May 2025,” said National Grid CEO, John Pettigrew.

Centrica chief executive, Chris O’Shea, said that the Isle of Grain terminal is a strategic asset that will “support the UK’s energy security for many decades to come”.

“That’s why we are so pleased to be investing, continuing Centrica's pivot towards long-term, predictable infrastructure cash flows, underpinning our medium-term guidance and creating valuable future options,” O’Shea commented.

“We are delighted to be partnering with ECP, a highly experienced investor in energy infrastructure around the world. We look forward to working with them and Grain LNG’s management team to deliver on the full potential of this unique asset for customers and the country.”

President and managing partner at ECP, Tyler Reeder, added: “We are thrilled to be partnering with Centrica, who bring a wealth of knowledge and experience in the UK energy markets, as we execute our joint vision to optimise this world class asset and set up Grain LNG for success for decades to come.”

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