Dragon LNG Offers Long-Term Regas Capacity in UK Auction

Dragon LNG has launched an auction offering 9.3 Bcm per year of regasification capacity starting in 2029, providing a rare opportunity for long-term LNG access in the UK market.

(P&GJ) — Dragon LNG has launched a binding auction for approximately 9.3 billion cubic meters per year of regasification capacity at its terminal in South Wales, offering long-term access to the U.K. gas market starting in 2029.

The capacity, available from Aug. 26, 2029, represents one of the few opportunities to secure primary LNG regasification access in northwest Europe, where demand for flexible import capacity remains strong.

The terminal, owned by Shell and VTTI, has been in operation since 2009 and supplies roughly 10% of the U.K.’s natural gas demand. Existing capacity contracts run through 2029, after which the newly auctioned capacity will become available.

Dragon LNG said the auction structure allows participants to bid for capacity in tranches of about 1.2 Bcm per year, with options to secure up to the full terminal capacity. Contracts are expected to run for a minimum of 10 years.

Simon Ames, managing director of Dragon LNG, said the offering reflects continued demand for long-term LNG access in the U.K. market.

“Dragon LNG offers an opportunity to secure long-term regasification capacity in the U.K. market,” Ames said. “We are positioned to support customers’ long-term supply and portfolio needs.”

The auction process follows engagement with market participants and aligns with U.K. regulatory guidance on third-party access to LNG facilities.

Interested parties will have access to auction documentation beginning in mid-April, with bids due by July 13, 2026.