British Gas parent firm Centrica has signed a 15-year LNG supply agreement with U.S.-based Delfin Midstream, the companies said on July 11.
Britain and other European countries have turned to the United States for LNG to help reduce their reliance on Russian gas following Moscow's invasion of Ukraine in February 2022.
More than 70% of U.S. LNG exports went to Europe last year.
The long-term supply deal for 1 million tonnes of LNG a year from Delfin's planned Deepwater Port off the coast of Louisiana has a market value of $8 billion.
Centrica expects to take delivery of about 14 LNG cargoes a year, providing enough energy to heat about 5% of UK homes, it said.
Pending Delfin's final investment decision on the port project, operations and first LNG are expected in 2027.
Developers typically agree long-term supply agreements before making a final investment decision.
In December, the United States and Britain announced on an energy partnership aimed at sustaining a higher level of LNG exports to Britain and collaborating on ways to increase energy efficiency.
The U.S. became the world's largest LNG producer by installed capacity in 2022 and is planning to expand capacity further.
Recommended Reading
Diversified to Buy East Texas NatGas Assets from Crescent Pass
2024-07-10 - Diversified Energy’s $106 million deal with Crescent Pass Energy comes during a prolonged dip in natural gas prices that some analysts expect to rebound as demand ramps up for LNG exports and power demand.
TotalEnergies Joins Ruwais LNG Project in UAE
2024-07-11 - French energy giant TotalEneriges joined the two-train 9.6 million tonnes per annum Ruwais LNG project in the United Arab Emirates with a 10% interest. The LNG project is expected to start sending out cargos in the second half of 2028.
Aramco to Source Shale Feed-gas from NextDecade’s RGLNG Train 4
2024-06-13 - Aramco looks to offtake LNG from NextDecade Corp.’s Rio Grande LNG Train 4 in Brownville, Texas. A move that will source feed-gas from the Permian and Eagle Ford.
Bakshani: Midstream Exhibiting M&A Fever Symptoms
2024-05-20 - East Daley Analytics identified several market factors in the midstream sector that point to further consolidation ahead.
Aethon to Acquire Tellurian Haynesville Shale Assets for $260MM
2024-05-29 - Aethon Energy is acquiring Tellurian Inc.'s Haynesville Shale assets in a $260 million deal, allowing Aethon to continue growing as the basin's top private producer and for financially struggling Tellurian to prioritize its flagship Driftwood LNG project.