Centrica inks deal to buy LNG from Delfin

Delfin Midstream, the developer of a floating LNG export project in the Gulf of Mexico, has signed a heads of agreement to supply liquefied natural gas to UK-based energy firm Centrica.

Under the deal, Centrica would buy 1 million tonnes per annum of LNG for 15-years on a free on board basis at the Delfin Deepwater Port, located off the coast of Louisiana.

This agreement provides Delfin with another key foundation customer which would facilitate a final investment decision (FID) for the floating LNG export facility by the end of this year, with operations expected to commence in 2026, according to a joint statement.

The LNG supplies would start in 2026.

Prior to this, Delfin signed a deal with a unit of energy trader Vitol.

“Market demand for long-term LNG continues to be strong and buying activity from Europe and various other geographies has accelerated over the past few months,” Dudley Poston, CEO of Delfin said.

“As a modular project that can make FID in 3.5 mtpa increments, this agreement materially advances our first vessel’s path towards FID later this year,” Poston said.

Deal worth about $8.48 billion

Against a “challenging” geopolitical and macroeconomic environment Centrica has been working to bolster the UK and Ireland’s energy security both now and over the longer term, the statement said.

The firm recently signed an additional supply agreement with Equinor to supply 4.5 million UK homes through to 2025, and now signed this deal with Delfin to grow its LNG portfolio.

According to the statement, the new deal with Delfin is worth 7 billion pounds ($8.48 billion).

“Natural gas has now been recognized as an essential transition fuel on the path to net zero just at the point geopolitical uncertainty is impacting the global gas market,” Chris O’Shea, Centrica chief executive said.

“I’m delighted to sign this heads of agreement with Delfin as we continue to deliver our new strategy, growing Centrica’s LNG portfolio and ensuring that we increase our access to a diversified range of reliable gas supplies for our customers,” O’Shea said.

- Advertisements -

Most Popular

Perenco takes stake in Golar LNG

London-based oil and gas firm Perenco has purchased a stake in floating LNG player Golar LNG. According to a SEC...

Singapore LNG bunkering volumes hit new record

Singapore’s liquefied natural gas (LNG) bunkering sales reached a new record in May, according to Singapore’s Maritime and Port...

Singapore’s Temasek says to sell Pavilion to Shell

Singapore's investment firm Temasek said it had agreed to sell 100 percent of its shares in Pavilion Energy to...

More News Like This

MARAD: Delfin needs to submit amended application for FLNG project

The US Maritime Administration (MARAD) said that Delfin LNG needs to file an amended application for its floating LNG...

Delfin seeks DOE extension for FLNG project

Delfin Midstream, the US developer of a floating LNG export project in the Gulf of Mexico, is seeking a...

Chesapeake seals LNG deal with Delfin and Gunvor

US shale gas producer Chesapeake Energy has entered into an offtake deal with Delfin Midstream, the US developer of...

Repsol, Centrica seal LNG supply deal

UK-based energy firm Centrica has signed a deal with Spain's Repsol to buy liquefied natural gas (LNG) from the...