Dragon LNG, a receiving terminal for LNG in South-West Wales, has launched a market consultation for the auction of 9 billion m3/y of regasification capacity, available from 26 August 2029.
Dragon LNG has taken account of feedback from an ‘Expression of Interest’ held in 2024, 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 billion m3/y (12 012 GWh/y ).
- The opportunity for those with larger capacity requirements to secure up to 100% of Dragon LNG’s capacity (9 billion m3/y).
- 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, commented: “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.