UK energy supplier Centrica has signed an agreement with US-based Delfin Midstream to buy liquefied natural gas (LNG) at the Delfin Deepwater Port off the coast of Louisiana from 2026.
The Windsor-based owner of British Gas said a 15-year deal would see 1m tonnes per annum of LNG delivered on a free-on-board basis worth £7bn (around $8.5bn).
The deal should provide Delfin with another foundation customer, which will facilitate a final investment decision for the first floating LNG export facility in the US.
“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. As a modular project that can make FID in 3.5 MTPA increments, this agreement materially advances our first vessel’s path towards FID later this year,” said Dudley Poston, CEO of Delfin.
Centrica has been working to bolster the UK and Ireland’s energy security. Last month, the company also signed an additional £4bn supply agreement with Equinor to supply 4.5m UK homes through to 2025.
“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. 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,” stated Chris O’Shea, Centrica’s chief executive.
