The Oil & Gas Deal of the Year in Europe was awarded to Ancala’s sale of its 50% interest in Dragon LNG Group to VTTI, with judges impressed with a successful exit in a challenging M&A environment.  

The deal was agreed in May (2024), with the remaining 50% stake is held by Shell. 

Dragon LNG is a regasification terminal in Milford Haven, Wales. It is one of the UK’s 3 LNG terminals and sends out up to 9 billion cubic metres of gas per year. 

Ancala acquired the Dragon LNG stake in 2019 through Ancala Infrastructure Fund I through a complex carve out from Petronas. Under Ancala’s ownership, Dragon commissioned a reliquefication plant and conducted a site overhaul to improve its reliability and safety. 

It also increased its renewables build-out, installing a 10MWp solar park on site – designed and constructed by Anesco – and submitting a planning application for a 13MWp wind farm. 

Financial details of the transaction remain confidential. 

One judge, privy to those details, said: “The transaction resulted in a very good financial outcome for Ancala investors in a challenging deal environment. There was clear demonstration of asset management value creation during the 5-year ownership by Ancala.” 

The submission said: “Ancala was proactive in identifying the opportunity to invest in Dragon LNG, managing the asset including delivering significant decarbonisation initiatives, and delivering a successful exit in a subdued M&A market which outperformed the investment case. It marks Ancala’s sixth exit from its first flagship infrastructure fund which continues to outperform.” 

It added: “Ancala’s acquisition was motivated by declining North Sea gas volumes which Ancala expected to outpace declines in UK demand. This dynamic would necessitate LNG becoming an increasingly important component of the UK’s energy mix.” 

Another member of the judging panel said: “The successful exit was notable in a challenging M&A environment.”  

VTTI is owned by Vitol, IFM Investors and ADNOC. 

Advisers: 

• KPMG – financial, M&A, tax to VTTI
• Ashurst – legal to VTTI 
• Travers Smith – legal to Ancala
• Alvarez & Marsal – tax to Ancala