UK’s Centrica enters into LNG agreement
08 February 2024
Three-year deal with Spain’s Repsol
The UK’s Centrica Energy will purchase 1 million tonnes of liquified natural gas (LNG) from Spain’s Repsol between 2025 and 2027.
All of these cargoes are expected to be delivered to the Grain LNG import terminal in Kent.
The deal marks an additional move to build further resilience in the UK’s energy security, Centrica said. It follows a 15 year, US$8 billion deal with Delfin Midstream in July 2023, a three-year supply agreement in 2022 with Equinor and the reopening and expansion of the Rough gas storage facility in June 2023. Rough now provides half of the UK’s total gas storage capacity with the potential to store over 50 bcf of gas.
“When our security of supply is threatened, it’s customers that lose out, so it’s reassuring that this agreement will ultimately help ensure that those on the front line of the energy crisis have some insulation from price fluctuations,” said Chris O’Shea, Centrica Group CEO. “Natural Gas is an essential transition fuel in the move to net zero and securing international agreements such as this will be vital if the UK is to reach its ambitious goals. Alongside the other steps we’ve taken to make the UK more resilient – through deals with Delfin Midstream and Equinor – our actions demonstrate our commitment to the UK consumer. We stand ready to invest several billion pounds in additional projects, creating thousands of new UK jobs, with the right regulatory framework.”