Centrica Plc is ramping up its supplies of liquefied natural gas from the US, clinching an $8 billion deal with the first floating export facility off Louisiana.
(Bloomberg) — Centrica Plc is ramping up its supplies of liquefied natural gas from the US, clinching an $8 billion deal with the first floating export facility off Louisiana.
The UK’s biggest energy supplier signed the contract for 1 million tons of LNG a year with Delfin Midstream Inc., following their heads of agreement last year. When the US project starts production, the deliveries will provide enough energy to heat 5% of UK homes for 15 years and “build further resilience” to the country’s energy security, Centrica said in a statement Tuesday.
Centrica has been expanding its LNG portfolio over the past few years, and intensified its efforts after Russia’s invasion of Ukraine upended the European gas market. Meanwhile, Delfin has been scouting for customers for production from its LNG project.
With the off-take capacity for the new project now sold, Delfin will continue moving toward a final investment decision, the US company said in the same statement.
Centrica expects the Delfin supplies starting from 2027, it said in a presentation in May. The agreement, covering around 14 LNG cargoes per year on a so-called free on board basis, has a mixture of Henry Hub and European pricing, the company said back then.
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