Centrica signs LNG heads of agreement with Delfin

HOUSTON – Centrica and Delfin Midstream Inc. have announced the signing of a heads of agreement to purchase 1 million tonnes per annum (mtpa) of LNG for 15 years on a free on board basis at the Delfin Deepwater Port, located 40 nautical miles off the coast of Louisiana.

This agreement provides Delfin with another key foundation customer, which will facilitate a final investment decision for the first floating LNG (FLNG) export facility in the US by the end of this year, with operations expected to commence in 2026.

Against a challenging geopolitical and macroeconomic environment, Centrica has been working to bolster the UK and Ireland’s energy security both now and over the longer term. Last month Centrica signed an additional £4 billion supply agreement with Equinor to supply 4.5 million UK homes through to 2025; and this £7 billion agreement with Delfin, which starts in 2026, will underpin the expansion of US LNG export capacity, according to Delfin Midstream.

Delfin LNG is a brownfield deepwater port that is designed to support up to four FLNG vessels producing up to 13 mtpa of LNG. To advance the project, Delfin has purchased the UTOS pipeline, which it says is the largest natural gas pipeline in the Gulf of Mexico.

08.09.2022