UK's Centrica signs $8 billion LNG deal with Delfin Midstream
Reuters
Published Jul 11, 2023 07:14
Updated Jul 11, 2023 10:31
(Reuters) - British Gas parent firm Centrica (LON:CNA) has signed a 15-year liquefied natural gas (LNG) supply agreement with U.S.-based Delfin Midstream, the companies said on Tuesday.
Britain and other European countries have turned to the United States for LNG to help reduce their reliance on Russian gas following Moscow's invasion of Ukraine in February 2022.
More than 70% of U.S. LNG exports went to Europe last year.
The long-term supply deal for 1 million tonnes of LNG a year from Delfin's planned Deepwater Port off the coast of Louisiana has a market value of $8 billion.
Centrica expects to take delivery of about 14 LNG cargoes a year, providing enough energy to heat about 5% of UK homes, it said.
Pending Delfin's final investment decision on the port project, operations and first LNG are expected in 2027.
Developers typically agree long-term supply agreements before making a final investment decision.
In December, the United States and Britain announced on an energy partnership aimed at sustaining a higher level of LNG exports to Britain and collaborating on ways to increase energy efficiency.
The U.S. became the world's largest LNG producer by installed capacity in 2022 and is planning to expand capacity further.
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Written By: Reuters
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