Hong Kong firm close to sealing £2bn purchase of LNG terminal
The acquisition of Europe's largest LNG terminal would expand CKI's footprint in Britain's critical utilities infrastructure, adding to its holdings in electricity and gas networks and in the water sector.
National Grid announced in May last year that it intended to sell Grain LNG as part of efforts to streamline its business and raise cash to fund investment in its core energy networks. It kicked off the sale process in April and CKI is now the lead bidder, Bloomberg reported, adding that a deal could be announced within days.
The LNG terminal on the Isle of Grain in Kent is a vital part of Britain's energy infrastructure, the biggest of three terminals that enable the import of gas from around the world, superchilled to liquid form for transport by tanker.
The site spans more than 600 acres and is capable of importing 15 million tonnes of gas a year, or a fifth of UK gas demand. It has four giant LNG storage tanks, each larger than the Royal Albert Hall.
National Grid reported adjusted operating profits of £150 million from the business in the year to March 2025.
The FTSE 100 energy group is seeking to invest £60 billion over five years in its energy networks in Britain and America.
• Is this a good time to buy shares in National Grid?
The sales process attracted interest from a large number of potential buyers, said also to have included British Gas owner Centrica. National Grid said in May that it expected 'to announce a transaction later this year'.
CKI is part of the business empire founded by the billionaire Li Ka-Shing, 97, and is chaired by his son, Victor Li. The group has been listed in Hong Kong since 1996 and added a secondary listing on the London Stock Exchange last year. It is majority owned by CK Hutchison, in which the Li family is a minority shareholder.
In Britain, CKI already has holdings in UK Power Networks, the electricity distribution network covering London, the southeast and east of England, as well as the gas distribution networks Northern Gas Networks and Wales and West Utilities gas networks, and the water company Northumbrian Water.
CKI is also interested in acquiring Thames Water and has been pushing Ofwat to reopen a bidding process after the preferred bidder KKR walked away.
CKI and National Grid declined to comment.
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