Spanish utility Iberdola has announced it is selling its liquefied natural gas (LNG) assets to Pavilion Energy.
The portfolio has a total annual volume of more than five billion cubic meters, sea transport and long term regasification capacity in the UK as well as other gas supply related agreements.
The divestment from Iberdrola is expected to be completed in January 2020.
A statement from the Spanish firm states: “The agreement signed today between Iberdrola and Pavilion Energy represents a change in the group’s current gas supply strategy to fulfil not only the customer needs but also those of combined cycle plants.
“The company will now focus on short term supply, taking advantage of this trend in European gas markets.”
Iberdrola, owner of Big Six supplier ScottishPower, recently announced it is entering the energy supply market in Ireland.