Centrica, an energy company headquartered in the UK, has reached a long-term deal worth $8 billion with Delfin Midstream to purchase 1 million tons of liquefied natural gas annually from Delfin Midstream's deep water port. The agreement will supply liquefied natural gas for a period of 15 years on a free basis on board the ship.

According to the agreement, Centrica will receive nearly 14 shipments of liquefied natural gas annually. This may help provide sufficient energy to heat 5% of British households for 15 years.

The Brown Land Deep Water Port of Delfin Midstream is located 74 nautical miles off the coast of Louisiana. The project involves the construction of four floating liquefied natural gas ships, with a total production capacity of up to 13.3 million tons of liquefied natural gas per year.

Chris O'Shea, CEO of Centrica Group, stated that this agreement is good news for our clients and countries. The past year has demonstrated the crucial importance of investing in UK energy security. Solving the direct impact of the Energy crisis on customers has always been one of our top priorities, but I am acutely aware that we also need to look ahead to manage future risks and ensure our supply. The purchase and sale agreement follows the agreement signed by both parties in August 2022.

Dudley Poston, CEO of Delfin Midstream, stated that with the purchase capacity of Delfin's first FLNG vessel now sold, we will continue to move towards the final investment decision and advance this important project as a partner for countries such as the UK as it continues to make progress, strengthen national energy security, and lower prices through clean and reliable liquefied natural gas.

According to Centrica, it is expected to begin operation and the first batch of liquefied natural gas at Delphine Deep Water Port in 2027. The British company also reached a three-year supply agreement with Norwegian oil and Naturgy Equinor, which will heat 4.5 million households by 2024.

Last month, Centrica said that the reopening of the Rough gas storage facility in October 2022 would now meet half of British Gas's total natural gas reserves. The company stated that as a fundamental customer of Delfin's liquefied natural gas project, its off-take supports the next wave of investment in incremental supply of liquefied natural gas in the United States. In addition, it will increase its diversified and flexible liquefied natural gas investment portfolio, said the UK based company.Editor/XingWentao