Centrica signs UK LNG supply agreement
Published by Theodore Reed-Martin,
Editorial Assistant
LNG Industry,
Centrica and Delfin Midstream Inc. today announced the signature of a long-term sales and purchase agreement (SPA) for 1 million tpy of LNG for 15 years on a free on board 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.
The deal, with a market value of US$8 billion, 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 4.5 million 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 Ft3 of gas, enough to heat almost 10% of UK homes throughout winter.
As 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.
“We are pleased to be a foundation customer of the Delfin LNG project, an innovative floating LNG (FLNG) infrastructure solution with shorter construction time frame and hence expedited export of natural gas from the US. This deal provides Centrica with access to flexible supply which is fully aligned with EM&T's overall strategy to grow the trading, and optimise business across LNG, gas, power and renewables and which creates greater flexibility to optimise within our portfolio,” said Cassim Mangerah, Managing Director of Energy, Marketing, and Trading at Centrica
“We are excited to finalise this SPA with Centrica, converting our previously announced Heads of Agreement and reaching another important milestone for our Deepwater Port LNG Export Facility,” said Dudley Poston, Ceo of Delfin. “There is growing global demand for long-term, scalable LNG supply. With the off-take capacity for Delfin’s first FLNG Vessel now sold, we continue to move towards Final Investment Decision and bring this important project forward, becoming a partner to countries like the UK as it continues to make progress bolstering national energy security and driving down prices with clean, reliable LNG.”
Read the article online at: https://www.lngindustry.com/floating-lng/13072023/centrica-signs-uk-lng-supply-agreement/
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