Centrica seals 15-year US gas supply contract

Energy giant Centrica has struck an 8 billion dollar (£6.2 billion) deal to import more gas from the US.

The British Gas parent firm has agreed a 15-year contract to buy liquefied natural gas (LNG) from Delfin-Midstream, marking the first sale from Delfin’s planned Deepwater Port off the Louisiana coast.

Centrica said the move could provide energy to heat 5% of UK homes over the next 15 years.

Group chief executive Chris O’Shea said the move is a significant investment to improve UK energy security.

UK energy firms have seen the US as an increasingly important supplier of gas over the past year after the Russian invasion of Ukraine.

Natural gas has also become a growing part of the UK’s mix of energy sources as it attempts to decarbonise, with the gas able to used for low emission hydrogen.

The new deal comes weeks after Centrica increased capacity at its Rough gas storage site – the UK’s largest facility – in order to provide the firm with a bigger safety cushion for next Winter.

Mr O’Shea said: “Natural gas is an essential transition fuel in the move to net zero and securing international agreements such as this are vital to the UK’s energy security.

“As well as strengthening the trade links between the UK and US, this deal – alongside reopening Rough and our major deal with Equinor – shows that Centrica is investing heavily to future-proof the UK’s energy supply and address one of the underlying causes of the energy crisis.

“We stand ready to invest several billion pounds in additional projects, creating thousands of new UK jobs, with the right regulatory framework.”