Hong Kong Firm Nears Two Billion Pound Deal for Kent LNG Terminal Sale

CK Infrastructure, a leading Hong Kong-based utilities investor, is on the verge of securing a £2 billion agreement to acquire the Isle of Grain liquefied natural gas terminal from National Grid. This landmark deal would add Europe’s largest LNG terminal to CKI’s already extensive UK portfolio, solidifying its position across Britain’s energy infrastructure sector.

Listed in Hong Kong since 1996 and chaired by Victor Li, son of empire founder Li Ka-Shing, CKI has rapidly expanded its presence in the United Kingdom. The group currently maintains substantial interests in UK Power Networks, which supplies electricity across London and southeastern England, as well as in major gas and water companies including Northern Gas Networks, Wales and West Utilities, and Northumbrian Water. Its possible move for the Isle of Grain follows its interest in Thames Water, with CKI reportedly requesting Ofwat to restart a bidding process after the previous bidder withdrew.

The Isle of Grain terminal, located in Kent, is a critical asset for UK energy security, capable of importing 15 million tonnes of gas annually – accounting for about one fifth of the country’s total gas demand. Its vast 600-plus acre site features four enormous storage tanks, each larger than the Royal Albert Hall, enabling significant flexibility and resilience for Britain’s gas imports. National Grid originally announced plans to sell the asset in April last year as part of a strategy to streamline operations and raise funds, aiming to boost investments in core networks across Britain and the United States. Over the most recent financial year, the terminal generated £150 million in adjusted operating profits for National Grid.

Interest in the terminal has been considerable, with other parties such as Centrica, owner of British Gas, also exploring bids. National Grid aims to invest £60 billion over five years in its energy networks, both domestically and in the US. The sale attracted numerous suitors before CKI reportedly emerged as the leading bidder, according to informed sources. News of an imminent deal could be announced within days, drawing close attention from market analysts and energy sector stakeholders.

Should the acquisition proceed, CKI would further strengthen its status as a decisive player in UK utilities, wielding a diversified platform spanning electricity, gas, and water infrastructure. As the global energy landscape evolves, this transaction underscores the Kingdom’s enduring appeal to heavyweight international investors seeking long-term, strategic positions in essential services.