Centrica signs LNG supply agreement

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 for 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/d 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. Cassim Mangerah, Managing Director, Energy, Marketing & Trading, Centrica, said: “We are pleased to be a foundation customer of the Delfin LNG project, an innovative floating LNG (FLNG) infrastructure solution, with a shorter construction time-frame and hence, expedited export of natural gas from the US.”

Dudley Poston, CEO of Delfin, said: “With the off-take capacity for Delfin’s first FLNG Vessel now sold, we continue to move towards final investment decision (FID) and bring this important project forward by 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.” The deal follows a heads of agreement (HOA) between Centrica and Delfin in August 2022. Operations are expected to commence at the Delfin Deepwater Port in 2027.

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/11072023/centrica-signs-lng-supply-agreement/