Dragon LNG launches market consultation for capacity available from 2029

Dragon LNG, a receiving terminal for Liquified Natural Gas in South-West Wales, has launched a market consultation for the auction of 9 Bcm/year of regasification capacity, available from 26 August 2029.

Dragon LNG has taken account of feedback from an ‘Expression of Interest’ held last year, which generated interest from a broad range of potential customers.

Dragon LNG will offer customers one of the few opportunities to bid for firm primary LNG regasification capacity in Northwest Europe.

Dragon LNG expects to offer:

• A new ‘Bundle’ model, with capacity available in tranches as small as 1.11 bcm/a (12,012 GWh/a ).
• The opportunity for those with larger capacity requirements to secure up to 100% of Dragon LNG’s capacity (9Bcm/a).
• Flexibility for customers to bid for any combination of small or large lots with capacity available for a minimum term of 10-years.

Simon Ames, Managing Director, Dragon LNG said:

“Dragon LNG can supply 10% of the UK’s natural gas needs and has provided safe, reliable and flexible regasification of LNG since 2009.

“In line with regulatory requirements, we are now opening up our regasification capacity to the market. This approach allows all market participants access to a UK terminal, driving competition at auction and delivering a secure and diverse source of gas supply to the UK.”

The market consultation is part of a fair, transparent and equitable process to remarket capacity at the terminal. It is being held in line with Ofgem’s ‘Guidance on the regulated Third Party Access regime for Liquified Natural Gas facilities’.

The Market Consultation phase aims to test and elicit feedback from prospective customers on Dragon’s product offer, non-binding terms and capacity allocation process.

Next steps in the 2029 Capacity Marketing Process

The market consultation will be open on 4 September and closes on 10 October at 5pm UK time.

Following the market consultation, a capacity auction process is expected to launch at the end of 2025.

Companies interested in participating in the market consultation process are encouraged to contact Dragon LNG at capacity@dragonlng.com.

Dragon LNG looks forward to continuing to engage with interested parties throughout the process.