Business
Centrica signs major LNG supply agreement
Centrica signs major LNG supply agreement.
About this update from Centrica Plc
[{"type":"text","content":"\n\n11 July 2023\nCentrica signs major LNG supply agreement\nCentrica and Delfin Midstream Inc. today announced the signature of a long-term Sale and Purchase Agreement for 1.0 million tonnes per annum (MTPA) of Liquefied Natural Gas (\"LNG\") for 15-years on a Free on Board (\"FOB\") basis at the Delfin Deepwater Port, located 40 nautical miles off the coast of Louisiana. This agreement will see Centrica take delivery of around 14 LNG cargoes per year and could provide enough energy to heat 5% of UK homes for 15 years.\nThe deal, with a market value of $8bn, marks an additional move by Centrica to build further resilience in the UK's energy security. It follows a three-year supply agreement with Equinor that will heat 4.5m UK homes through to 2024 and the reopening of the Rough gas storage facility in October 2022. Rough now provides half of the UK's total gas storage capacity with the potential to store over 50 billion cubic feet (bcf) of gas, enough to heat almost 10% of UK homes throughout winter.\nAs a foundation customer of the Delfin LNG project, Centrica's offtake underpins investment in the next wave of incremental LNG supply from the US. It will complement a diversified and flexible LNG portfolio.\nChris O'Shea, Group Chief Executive, Centrica said:\n\"This agreement is good news for our customers and the country. The last year has demonstrated the critical importance of investing in the UK's energy security. Addressing the immediate impact of the energy crisis on our customers has been one of our biggest priorities, but I'm acutely aware that we also need to look ahead to manage future risks and secure our supplies.\nNatural Gas is an essential transition fuel in the move to net zero and securing international agreements such as this are vital to the UK's energy security. As well as strengthening the trade links between the UK and US, this deal - alongside reopening Rough and our major deal with Equinor - shows that Centrica is investing heavily to future-proof the UK's energy supply and address one of the underlying causes of the energy crisis. We stand ready to invest several billion pounds in additional projects, creating thousands of new UK jobs, with the right regulatory framework.\"\nDudley Poston, CEO of Delfin said:\n\"We are excited to finalize this SPA with Centrica, converting our previously announced...