Centric, Delfin Midstream Ink Agreement for LNG Supplies

Centric, Delfin Midstream Ink Agreement for LNG Supplies

Centrica and Delfin Midstream announced that they have signed a long-term Sale and Purchase Agreement for supplying 1.0 million tons per annum (MTPA) of Liquefied Natural Gas (LNG) for 15-years on a Free on Board (FOB) basis at the Delfin Deepwater Port.

The deal costs $8 billion. It states that Deflin will send around 14 LNG cargoes per year that could provide heat to 5% of UK homes for 15 years, Centrica said in a statement. The deal costs $8 billion.

This agreement follows a three-year supply agreement with Equinor that will heat 4.5 million home in UK until 2024 and the reopening of the Rough gas storage facility in October 2022.

It should be noted that Rough now provides half of the UK’s total gas storage capacity with the potential to store over 50 billion cubic feet (bcf) of gas, enough to heat almost 10% of UK homes throughout winter.

Commenting on the deal, Chris O’Shea, Group Chief Executive, Centrica said “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.

For his part, Dudley Poston, CEO of Delfin said: “We are excited to finalize this SPA with Centrica, converting our previously announced Heads of Agreement and reaching another important milestone for our Deepwater Port LNG Export Facility.




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