Centrica Plc has signed a 7 billion pound (US$8.47 billion) agreement with U.S.-based Delfin Midstream Inc. to buy LNG from 2026, Britain's largest energy supplier said on Aug. 9.
Countries across Europe are seeking to diversify their energy supplies following Russia's invasion of Ukraine and a drop in gas flows from Russia to Europe.
Centrica, which owns British Gas, said the 15-year deal would be worth around 7 billion pounds and involve buying 1 million tonnes of LNG per annum on a free on board from the Delfin Deepwater Port off the coast of Louisiana from 2026.
"Natural gas has now been recognized as an essential transition fuel on the path to net zero just at the point geopolitical uncertainty is impacting the global gas market," said Centrica CEO Chris O’Shea in a statement.
Britain is home to three of the largest LNG terminals in Europe – two terminals at Milford Haven and another at the Isle of Grain – where the super chilled fuel is converted back into gas.
"Today’s deal between Centrica and Delfin is positive news for the U.K., helping to ensure our diversity of supply from reliable sources," Kwasi Kwarteng, Britain's Business and Energy Minister said in Centrica's statement.
The United States became the world's top exporter of LNG in the first half of 2022 and is on course to exceed a pledge to provide Europe with more supplies of gas and help to break its dependence on Russian fuels.
Delfin said in the statement the deal was another milestone towards taking a final investment decision by the end of the year on the United States' first floating LNG export terminal.
Centrica also signed an agreement with Norway's Equinor in June for an additional 1 Bcm of gas supplies, enough to heat 4.5 million homes over the next three winters.
Recommended Reading
Seatrium Awarded Contract for FPSO Bound for Guyana’s Stabroek
2024-05-17 - The topsides fabrication and integration contract will be for the FPSO Jaguar, bound for the Whiptail Field in the Stabroek block offshore Guyana for Exxon Mobil.
Seadrill Sells Three Jackups for $338MM to Gulf Drilling International
2024-05-17 - Seadrill Ltd. is also selling its 50% equity interest in the joint venture that operates the rigs offshore Qatar.
Third Suriname Find for Petronas, Exxon Could Support 100,000 bbl/d FPSO
2024-05-17 - A recent find offshore Suriname in Block 52 by Petronas and Exxon Mobil could support a 100,000 bbl/d FPSO development, according to Wood Mackenzie.
US NatGas Flows to Freeport LNG in Texas Seen at Five-month High, LSEG Data Shows
2024-05-17 - The startup and shutdown of Freeport and other U.S. LNG export plants often has a major impact on global gas prices.
US Drillers Add Oil, Gas Rigs for First Time in Four Weeks: Baker Hughes
2024-05-17 - The oil and gas rig count rose by one to 604 in the week to May 17.