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Dow Jones Newswires: Centrica signs $8.45 billion deal to import U.S. LNG to U.K.

Centrica PLC

said Tuesday that it has signed a 15-year liquefied natural gas supply deal with Delfin Midstream Inc. valued at 7 billion pounds ($8.45 billion).

The British energy group said that the heads of agreement is to purchase 1.0 million metric tons a year of LNG from the Delfin Deepwater Port. This is a project to build the first floating LNG export facility in the United States off the coast of Louisiana.

Delfin is expected to reach a final investment decision by the end of 2022 and operations are expected to start in 2026.

“Additional U.S. gas export capacity will help increase U.K., European and global energy security, reflecting the increasing importance of LNG in the global gas supply chain,” Chief Executive Chris O’Shea said.

Centrica last month had signed an additional GBP4 billion gas supply deal with Norway’s Equinor ASA.

“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,” said Kwasi Kwarteng, the U.K. Secretary of State for Business and Energy.

Write to Jaime Llinares Taboada at; @JaimeLlinaresT

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