2029 Capacity Offer
Dragon LNG commences process to market its 9 Bcm/a capacity available from 2029
Dragon LNG, a receiving terminal for LNG in South-West Wales has launched an Expression of Interest (“EOI”) process for its 9 Bcm/year capacity, available from September 2029.
As one of three LNG terminals in the UK, Dragon has been operational since 2009 and has played a critical role in contributing to UK energy security. With over 300 cargoes received, Dragon has handled up to 25% of the UK’s Winter LNG imports in recent years.
Dragon LNG is a flexible, reliable terminal with an impeccable safety record. Capacity holders can gain access to the liquid National Balancing Point (NBP), and Title Transfer Facility (TTF) hubs, enhancing market reach. The facility, with its deep-water jetty, can accommodate vessels up to 217,500m3, and has two storage tanks with a combined capacity of 320,000 m3. With the ability to send out up to 298 GWh/d (or 25.6 mcm/d) natural gas, Dragon LNG’s operational flexibility is further enhanced by its reliquefaction plant commissioned in 2018. The reliquefaction plant eliminates boil off losses when LNG is in storage, allowing Dragon to offer a ‘zero sendout’ product enhancing value for customers by creating greater optionality.
Dragon LNG is building on its successful installation of renewable electricity generation capacity at the terminal . This will lead to lower carbon intensity of LNG shipped through the terminal and lower associated carbon costs.
Dragon closed its EOI process on July 1st and will be reviewing the feedback received from participants ahead of the Market Consultation phase.
Parties who did not participate in the EOI but would like to be involved in the process please contact the team at capacity@dragonlng.com. We would be happy to share more information and to discuss the opportunity further.
Monday 7th October 2024
We were very pleased with the feedback from the EOI, and continue to engage with market participants ahead of the Market Consultation.
Wednesday 30th October 2024
Dragon Energy’s Wind Turbine Project at Waterston has received planning approval for three new wind turbines at our Renewables Energy Park. This expansion will reduce emissions by approximately 11,500 tonnes annually, combining wind and solar to create a sustainable energy hub.
We extend heartfelt thanks to our project consultants, Boralex Inc., and the residents of Waterston, Llanstadwell, and Blackbridge (our Public Information Zone) for their invaluable support and feedback since March 2022.
Set to be operational by Q4 2026, the project will deliver cleaner energy, local jobs, and a 10-year Community Benefit Fund chosen by our community, with its focus on upskilling opportunities (starting September 2025) for residents within our Public Information Zone.
Addressing carbon scope 1 and 2 now helps to reduce our exposure to carbon cost, making us more resilient and competitive for the future. It also allows a platform for larger opportunities into Renewables. We consider Dragon to be a strong example of an energy business “thriving in the Energy Transition”
Monday 9th December 2024
Dragon continues to engage with parties interested in the capacity auction and will be available to discuss our offering at the World LNG Summit in Berlin 10th-12th December and by contacting the team directly (capacity@dragonlng.com).
We are continuing to engage with both the market and the regulator (Ofgem) to ensure that we have a robust process for the 2029+ capacity during 2025.
The precise dates for the formal launch remain under consideration and subject to approvals. Updates will be shared as soon as they are finalised.