Thursday 8 February 2024

Centrica and Repsol strike LNG deal

Centrica and Repsol strike LNG deal

Centrica Energy and Repsol have announced an agreement aimed at enhancing the UK's energy security.

Under the deal, Centrica will procure one million tonnes of LNG shipments for 2025 to 2027, all destined for the Grain LNG import terminal located in Kent.

This comes after previous agreements including a $8 billion (£6.3bn) deal with Delfin Midstream in July 2023, a three-year supply agreement with Equinor to heat 4.5 million UK homes until 2024, and the reopening and expansion of the Rough gas storage facility in October 2022 and June 2023 respectively.

Rough now accounts for half of the UK's total gas storage capacity, capable of storing over 50 billion cubic feet (bcf) of gas, sufficient to heat almost 10% of UK homes during winter.

Chris O'Shea, Centrica Group Chief Executive, said: "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."

Laura Rejon, Repsol Wholesale Gas & NG Trading SVP said: "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."

Written by

Sumit Bose

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