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Under the sales and purchase agreement, Petrobras will buy 0.8 million tons per annum (mtpa) of LNG for 15 years, starting in 2027.
Centrica said in a statement the agreement comprises approximately 30 percent of its US portfolio and will be sourced from Centrica’s Sabine Pass and Delfin supply agreements.
The agreement marks a “significant step” in expanding Centrica’s global LNG business, diversifying the locations it can deliver LNG to and supporting energy security in Brazil with an important new long-term partner, the firm said.
Chris O’Shea, Centrica chief executive, said this deal “demonstrates our approach to building long-term partnerships while derisking our portfolio exposure in the medium-term, in turn positioning us to continue growing our portfolio as new LNG supply comes into the market over the coming years.”
“The agreement with Centrica is aligned with Petrobras’ priorities to reduce its exposure to the spot market volatility, increase its competitiveness and be the best option for its customers,” Petrobras’ director of energy transition and sustainability, Maurício Tolmasquim, said.
Centrica’s LNG deals
In October 2024, US producer Coterra Energy signed gas supply deals with Centrica.
Under the contracts, Coterra will supply 100,000 MMbtu/d of natural gas linked to European gas prices such as TTF and NBP, for a period of 10 years, starting in 2028.
Centrica said at the time this “major” deal will reduce the market risk in Centrica’s LNG portfolio by purchasing US gas on the same price indices under which the LNG is subsequently sold, and help underpin customer energy supplies for a decade.
Prior to that, Centrica signed a deal with Spain’s Repsol to buy LNG from the latter.
The deal will see Centrica buy 1 million tonnes of LNG shipments between 2025 and 2027.
Centrica expects to receive all these cargoes at National Grid’s Grain LNG import terminal in Kent.
The firm has capacity rights at UK’s Grain LNG terminal.
This deal also followed a 15-year, $8 billion LNG deal with Delfin Midstream, the US developer of a floating LNG export project in the Gulf of Mexico, in July 2023.
Delfin has not yet taken a final investment decision on the first FLNG.
As per Cheniere’s Sabine Pass LNG facility, Centrica has a deal with Cheniere for 1.75 mtpa for 20 years.