Centrica signs $8bn LNG supply deal with Delfin Midstream

UK energy company Centrica on Tuesday said it had signed an $8bn deal with US-based Delfin Midstream to buy 1.0 million of liquefied natural gas a year for 15-years.

The agreement will see Centrica take delivery of around 14 LNG cargoes per year from the Delfin Deepwater Port, located 40 nautical miles off the coast of Louisiana, and could provide enough energy to heat 5% of UK homes for 15 years, the company said in a statement.

It follows a three-year supply agreement with Equinor that will heat 4.5 million UK homes through to 2024 and the reopening of the Rough gas storage facility in October 2022. Rough now provides half of the UK's total gas storage capacity with the potential to store over 50 billion cubic feet (bcf) of gas, enough to heat almost 10% of UK homes throughout winter.

Reporting by Frank Prenesti for Sharecast.com