Oil & Gas

10 Aug 2022

Centrica Strikes £7BN LNG Deal

10 Aug 2022  by   

Image: Delfin

Centrica has signed a £7 billion deal with the US LNG infrastructure firm Delfin to buy liquefied natural gas (LNG) from 2026.

The agreement will allow Britain’s largest energy supplier to purchase one million tonnes of LNG every year from the Delfin Deepwater Port off the coast of Louisiana.

Last month, the British Gas owner signed a £4 billion supply agreement with Equinor to supply 4.5 million UK homes through to 2025.

Chris O’Shea, Centrica Group Chief Executive, commented: “Additional US gas export capacity will help increase UK, European and global energy security, reflecting the increasing importance of LNG in the global gas supply chain.

“Natural gas has now been recognised as an essential transition fuel on the path to net zero just at the point geopolitical uncertainty is impacting the global gas market.”

A few days ago, Mr O’Shea admitted that the company was working with the government to allow Britain’s gas storage facility, Rough to reopen soon.

Dudley Poston, Chief Executive Officer of Delfin, said: “Market demand for long-term LNG continues to be strong and buying activity from Europe and various other geographies has accelerated over the past few months.”


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