Centrica Plc has signed an agreement with U.S.-based Delfin Midstream Inc to buy liquefied natural gas (LNG), Britain’s largest energy supplier said on Tuesday.
Countries across Europe are bracing for further cuts in Russian gas supply and have been purchasing massive volumes of LNG to store for winter.
The firm, which owns British Gas, said the 15-year deal would involve buying 1 million tonnes of LNG per annum on a free on board (FOB) from the Delfin Deepwater Port off the coast of Louisiana.
“Natural gas has now been recognised as an essential transition fuel on the path to net zero just at the point geopolitical uncertainty is impacting the global gas market,” said Centrica CEO Chris O’Shea.
“Additional U.S. gas export capacity will help increase UK, European and global energy security, reflecting the increasing importance of LNG in the global gas supply chain,” he added.
UK prices mostly rise on undersupply, Dutch prices mixed
Britain is home to three of the largest LNG terminals in Europe – two terminals at Milford Haven and another at the Isle of Grain – where the super chilled fuel is converted back into gas.
European LNG imports from January to July reached a record of more than 100 billion cubic metres (bcm), or 75 million tonnes, almost reaching the level for the whole of 2021.
In June, Centrica in June signed an agreement with Norway’s Equinor for an additional 1 bcm of gas supplies, enough to heat 4.5 million homes over the next three winters.
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