Centrica has signed a long-term sale and purchase agreement with Delfin Midstream Inc. for supplying 1.0 million tonnes per annum of LNG for 15-years. With a market value of USD 8 billion, the deal marks an additional move by Centrica to build further resilience in the UK’s energy security.
Jul 11, 2023
Centrica and Delfin Midstream Inc. have recently announced the signing of a long-term sale and purchase agreement for the supply of 1.0 MTPA of 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. The deal, with a market value of USD 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.
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.
Mr. Chris O’Shea, Group Chief Executive, Centrica said:“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.” The deal follows a Heads of Agreement between Centrica and Delfin in August 2022. Operations and first LNG are expected to commence at the Delfin Deepwater Port in 2027.