Finance

Centrica says £7bn gas deal with Delfin to ‘increase UK energy security’


Centrica said on 9 August that it has signed a 15-year liquefied natural gas supply deal with Delfin Midstream valued at £7bn ($8.45bn).

The UK energy group said that the heads of agreement is to purchase 1.0 million metric tons a year of LNG from the Delfin Deepwater Port. This is a project to build the first floating LNG export facility in the US off the coast of Louisiana.

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Delfin is expected to reach a final investment decision by the end of 2022 and operations are expected to start in 2026.

“Additional US gas export capacity will help increase UK, European and global energy security, reflecting the increasing importance of LNG in the global gas supply chain,” Chief Executive Chris O’Shea said.

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Centrica last month had signed an additional £4bn gas supply deal with Norway’s Equinor ASA.

“From renewables to nuclear, we have ambitious plans for greater energy independence, but we are also realistic about our energy needs now and in the years ahead. That means we need to secure more diverse and reliable sources of natural gas from friends, allies and strategic partners,” said Kwasi Kwarteng, the UK Secretary of State for Business and Energy.

This article was first published by MarketWatch. 

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