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Centrica seals £7bn US deal to secure long-term gas supplies

British Gas owner Centrica strikes £7bn US deal to secure long-term gas supply in battle for alternatives to Russia

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Centrica has secured £7bn for a deal to secure the long-term supply of liquefied natural gas (LNG) from US energy infrastructure group Delfin Midstream.

The country’s largest energy supplier, owner of British Gas, will purchase 1 million tons of LNG per year for 15 years from 2026 under the agreement, with the cargo delivered from a Delfin deep-water port off the coast of Louisiana.

Countries across Europe are struggling to secure alternative gas supplies following Russia’s invasion of Ukraine, the freezing of plans to develop the Nord Stream 2 gas pipeline and reducing the volume of gas flowing through the existing Nord Stream 1 pipeline.

Centrica, owner of British Gas, will buy 1 million tons of LNG per year from 2026 for 15 years from 2026

Centrica, owner of British Gas, will buy 1 million tons of LNG per year from 2026 for 15 years from 2026

LNG from the US is seen as an important source of alternative supply in the light of Russia’s austerity measures.

The UK has three of the largest LNG facilities in Europe and has served as a vital energy link between US suppliers and European customers.

‘An important part of our energy security strategy is that natural gas is an important transition fuel on the way to clean, affordable home-grown energy’, says Business Secretary Kwasi Kwarteng.

Diversifying gas sources has become urgent as renewable energy, which it was hoped would help cushion the blow from shrinking gas supplies, has also been squeezed.

Norway will curb hydroelectric exports to the rest of Europe until water levels in the reservoirs recover from their lowest levels since 1996.

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