Igneo Infrastructure Partners and OMERS are discussing forming a consortium to bid for National Grid’s Grain LNG terminal, sources said.

The two investors are working together with DC Advisory to prepare a possible offer for Grain, which is one of the largest LNG import terminals in Europe, said the sources.

An Igneo investment committee is expected to decide next week whether to join forces with the Canadian investor and proceed with an offer, the sources added.

British Gas owner Centrica is also set to form a consortium for the auction, with one source saying it is discussing joining forces with BlackRock.

Other contenders for the asset include Hong Kong-based CK Infrastructure, which has appointed Barclays to advise it on a bid, and KKR Infrastructure, which is being advised by Macquarie Capital.

The terminal, which generated GBP 188m of EBITDA in 2024, could fetch an enterprise value of between GBP 1.6bn and GBP 2bn.

National Grid distributed information memorandums in recent days and opened a data room to allow select bidders to prepare indicative offers by June, sources added.

Morgan Stanley is advising National Grid on the sale of the terminal located on the Isle of Grain in Kent.

Grain LNG is an asset of strategic importance for the UK’s energy security as the largest of only three LNG import terminals in the country, which contributes to its appeal to investors.

The asset, which has 20 billion cubic metres (bcm) of annual gas throughput capacity, is currently debt free, according to a source.

The UK’s second-largest terminal is South Hook in Wales, majority-owned by QatarEnergy, with 15 bcm of annual capacity, followed by Dragon LNG, in which VTTI last year bought a 50% stake for around 10x EBITDA, joining Shell as a shareholder.

Other financial and strategic investors have been linked to the deal as potential bidders. These include Macquarie Asset Management, Singapore’s GIC, VTTI, Trafigura and MidOcean Energy – an LNG business backed by US energy investor EIG.

National Grid, Centrica, OMERS, Igneo and Macquarie Capital declined to comment, while CK Infrastructure, Barclays, DC Advisory, KKR and BlackRock did not respond to requests for comments.