Centrica has signed a £7 billion agreement to purchase a total of 15 million tonnes of liquefied natural gas (LNG) from US firm Delfin Midstream.
Located 40 nautical miles off the Louisiana coast, the Delfin Deepwater Port is the first floating LNG export facility in the US.
The deal announced on Tuesday (9 August) will see the British Gas owner purchase 1 million tonnes of LNG annually from Delfin’s facility over a 15-year period beginning in 2026. The company said this would be enough to heat around 1.5 million homes in a typical winter.
The agreement comes after Centrica struck a £4 billion deal with Norwegian energy company Equinor in June to deliver an additional 1 billion cubic meters of gas to the UK for each of the next three winters.
Centrica chief executive Chris O’Shea 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.”
Business secretary Kwasi Kwarteng described the deal as “positive news for the UK” which will help ensure diversity of supply from reliable sources.
He added: “A key component of our Energy Security Strategy is that natural gas is a key transition fuel on the road to clean, affordable, home-grown energy.
“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.”