UK-based Centrica and US-based Delfin on Tuesday (9th August) struck a Heads of Agreement for the purchase that highlights the growing reliance of US LNG.
The agreement further provides Delfin with another key customer, helping facilitate a Final Investment Decision for the first floating LNG export facility in the US by the end of the year.
It is hoped operations at the site will begin in 2026.
Dudley Poston, CEO of Delfin, said, “We are very pleased to enter into this agreement with Centrica and continue to rapidly advance Delfin’s position as a leading source of reliable low-cost energy from the safety of the US at compelling prices.”
“Market demand for long-term LNG continues to be strong and buying activity from Europe and various other geographies has accelerated over the past few months. As a modular project that can make FID in 3.5 MTPA increments, this agreement materially advances our first vessel’s path towards FID later this year.”
As gasworld reported in June (2022), data and analytics company GlobalData believes the US is expected to contribute 57% of total LNG liquefaction capacity additions between 2022 and 2026.
With this, the firm predicts that the US will add a new build LNG liquefaction capacity of 220.3 million tonnes per annum (mtpa) by 2026.
Celebrating the US deal, Chris O’Shea, Group Chief Executive of Centrica, added, “Natural gas has now been recognised as an essential transition fuel on the path to Net Zero just at the point geopolitical uncertainty is impacting the global gas market.”
“Additional US gas export capacity will help increase UK, European and global energy security, reflecting the increasing importance of LNG in the global gas supply chain. I’m delighted to sign this Heads of Agreement with Delfin as we continue to deliver our new strategy, growing Centrica’s LNG portfolio and ensuring that we increase our access to a diversified range of reliable gas supplies for our customers.”