Centrica PLC (LSE:CNA) has signed an US$8bn deal with US-based Delfin Midstream to buy 1.0mln tonnes of liquefied natural gas (LNG) a year for 15 years.
The deal will see Centrica, the owner of British Gas, take delivery of around 14 LNG cargoes per year and could provide enough energy to heat 5% of UK homes for 15 years.
The FTSE 100-listed firm said the agreement marks an additional move to build further resilience in the UK's energy security.
It follows a three-year supply agreement with Equinor that will heat 4.5mln UK homes through to 2024 and the reopening of the Rough gas storage facility in October 2022.
Rough now provides half of the UK's total gas storage capacity with the potential to store over 50bn cubic feet of gas, enough to heat almost 10% of UK homes throughout winter.
Chris O'Shea, chief executive, said: “The last year has demonstrated the critical importance of investing in the UK's energy security.”
“Addressing the immediate impact of the energy crisis on our customers has been one of our biggest priorities, but I'm acutely aware that we also need to look ahead to manage future risks and secure our supplies.”
The two parties said LNG is expected to commence at Delfin’s Deepwater Port in 2027.