Centrica Inks $8.5bn LNG Deal With US Supplier

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UK-based energy services and solutions provider Centrica has signed a deal with U.S. LNG export projects developer Delfin Midstream to buy LNG, reports LNGPrime.

New LNG deal

On 9 August, Centrica and Delfin Midstream announced the signing of a heads of agreement. Under the HOA, Centrica will purchase 1.0 million tonnes per annum (mtpa) of LNG for 15-years on a free on board (FOB) basis at the Delfin Deepwater Port, located off the coast of Louisiana.

This deal provides Delfin with another key foundation customer which will facilitate a final investment decision (FID) for the first floating LNG export facility in the U.S. by the end of this year, with operations expected to commence in 2026.

Centrica said it has been working to bolster the UK and Ireland’s energy security both now and over the longer term. Last monthit signed an additional £4bn supply agreement with Equinor, and this £7bn agreement with Delfin, which starts in 2026, will underpin the expansion of U.S. LNG export capacity.

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Source: LNGPrime

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