British Gas owner Centrica yesterday announced a £7billion deal to import liquified natural gas from the US as part of efforts to bolster long-term energy security in the UK as Russia restricts gas supplies.

The energy-services company has agreed to purchase 1million tonnes of LNG annually for 15 years from Delfin Midstream.

The gas will be shipped across the Atlantic from a deepwater port off Louisiana.

Chris O'Shea, the Centrica chief executive, said: "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.

"Additional US gas export capacity will help increase UK, European and global energy security, reflecting the increasing importance of LNG in the global gas supply chain.

"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."

Last month, Centrica signed an additional £4billion deal for Equinor to supply 4.5million UK homes through to 2025, and this £7billion agreement with Delfin, which starts in 2026, will underpin the expansion of US LNG export capacity.

Gas a key transition fuel

UK Business Secretary Kwasi Kwarteng said a key component of the country's energy security strategy is that natural gas is a key transition fuel on the road to clean, affordable, home-grown energy.

He added: "From renewables to nuclear, we have ambitious plans for greater energy independence, but we are also realistic about our energy needs now and in the years ahead.

"That means we need to secure more diverse and reliable sources of natural gas from friends, allies and strategic partners.

"Today's deal between Centrica and Delfin is positive news for the UK, helping to ensure our diversity of supply from reliable sources - like our friends in the United States - for many years to come."

Delfin is an LNG export infrastructure development company using low-cost floating LNG technology solutions.

Dudley Poston, chief executive of Delfin, said: "We are very pleased to enter into this agreement with Centrica and continue to rapidly advance Delfin's position as a leading source of reliable low-cost energy from the safety of the US at compelling prices.

"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."

More like this…

View all