11th Jul 2023 07:48
(Alliance News) - Centrica PLC on Tuesday said it signed a long-term sale and purchase agreement for 1.0 million tonnes a year of liquefied natural gas.
The agreement is for 15 years on a free on board basis at the Delfin Deepwater Port, located 40 nautical miles off the coast of the US state of Louisiana. It has a market value of USD8 billion.
Operations and first liquefied natural gas are expected to begin at the port in 2027. It will see Centrica take delivery of around 14 LNG cargoes a year and could provide enough energy to heat 5% of UK homes for 15 years, the company said.
The deal follows a heads of agreement between Centrica and Delfin in August and a separate three-year supply agreement with Equinor.
"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," said Chief Executive Chris O'Shea.
Centrica is a Windsor, England-based energy company and the parent of British Gas.
By Heather Rydings, Alliance News senior economics reporter
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