Centrica concludes LNG supply deal with Repsol
Centrica concludes LNG supply deal with Repsol - Offshore Energy
Centrica concludes LNG supply deal with Repsol
UK’s Centrica Energy and Spain’s Repsol have signed an LNG supply deal that will see Centrica purchase 1 million tons of LNG shipments between 2025 and 2027.
According to Centrica, all of the cargos are expected to be delivered to the Grain LNG import terminal, which is expected to soon have enough regasification capacity to service approximately one-third of the UK’s gas demand, serving as a gateway to the UK energy market as well as the broader European region.
Chris O’Shea, Centrica Group Chief Executive, said: “I’m proud that Centrica is continuing to improve the UK’s security of supply through this deal with Repsol. 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.”
“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.”
Laura Rejon, Repsol Wholesale Gas & NG Trading SVP, stated: “Reliable and affordable energy supplies are crucial to maintaining economic and social wellbeing, and we are delighted that our partnership with Centrica contributes to this end.”
To note, the deal follows a 15-year, $8 billion deal with U.S. Delfin Midstream in July 2023, a three-year supply agreement with Norway’s Equinor and the reopening and expansion of the Rough gas storage facility in October 2022 and June 2023 respectively.
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.