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Investing.com -- Centrica Plc Centrica plc stock gained 1.5% on Thursday after announcing the acquisition of the Isle of Grain liquified natural gas terminal in partnership with Energy Capital Partners for an enterprise value of £1.5 billion.
The British energy company will take a 50% stake in the strategic UK asset, with its equity investment amounting to approximately £200 million after accounting for about £1.1 billion of new non-recourse project finance debt.
The Isle of Grain terminal provides critical LNG import/export capabilities, regasification, and rapid response gas storage capacity to balance the UK energy system.
The acquisition aligns with Centrica’s strategy of investing in regulated and contracted assets that support the energy transition while delivering predictable long-term, inflation-linked cash flows.
According to the company, 100% of the terminal’s capacity is contracted until 2029, with over 70% contracted until 2038 and more than 50% until 2045.
Centrica expects its share of EBITDA to be approximately £100 million per annum, with cash distributions projected around £20 million on average per annum for 2026-2028.
"The Isle of Grain terminal is a strategic asset that will support the UK’s energy security for many decades to come, keeping energy flowing reliably and affordably to households and businesses across the country as we transition to net zero," said Chris O’Shea, Group Chief Executive of Centrica .
The company highlighted that the acquisition offers strong life-of-asset returns with an expected unlevered IRR of around 9% and an equity IRR of approximately 14%.
The investment underpins Centrica’s delivery of its £1.6 billion end-2028 EBITDA target.