British Gas parent firm Centrica has signed a 15-year liquefied natural gas (LNG) supply agreement with US-based Delfin Midstream.
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 (€7.3 billion).
Centrica expects to take delivery of about 14 LNG cargoes a year, providing enough energy to heat about 5% of UK homes.
Pending Delfin’s final investment decision on the port project, operations and the first LNG is expected in 2027.
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 and more than 70% of US LNG exports went to Europe last year.
Read more: Centrica to double Rough storage capacity
In December 2022, the United States and Britain announced an energy partnership aimed at sustaining a higher level of LNG exports to Britain and collaborating on ways to increase energy efficiency.
The US also became the world’s largest LNG producer by installed capacity in 2022 and is planning to expand further capacity.
