Centrica to buy LNG from Delfin Midstream

Centrica Plc, Britain’s largest energy supplier, has signed a 7-billion-pound ($8.47 billion) agreement with US-based Delfin Midstream Inc to buy liquefied natural gas (LNG) from 2026.

Centrica, which owns British Gas, said the 15-year deal would be worth around 7 billion pounds and involve buying 1 million tonnes of LNG per annum on a free on board (FOB) from the Delfin Deepwater Port off the coast of Louisiana from 2026.

Britain is home to three of the largest LNG terminals in Europe – two terminals at Milford Haven and another at the Isle of Grain – where the super chilled fuel is converted back into gas.

Countries across Europe are seeking to diversify their energy supplies following Russia’s invasion of Ukraine and a drop in gas flows from Russia to Europe.

The United States became the world’s top exporter of LNG in the first half of 2022 and is on course to exceed a pledge to provide Europe with more supplies of gas and help to break its dependence on Russian fuels. read more

Delfin said in the statement the deal was another milestone towards taking a final investment decision by the end of the year on the United States’ first floating LNG export terminal.

Centrica also signed an agreement with Norway’s Equinor in June for an additional 1 bcm of gas supplies, enough to heat 4.5 million homes over the next three winters.