Centrica Energy Concluded LNG Supply Agreement with Repsol

SEATTLE (Oil Monster): UK-headquartered Centrica Energy has entered into a liquefied natural gas (LNG) supply agreement with Spanish Repsol. The agreement is towards supply of 1 million tons of LNG over the period from 2025 to 2027.

Under the terms of the agreement, the LNG cargoes will be delivered at the Grain Liquefied Natural Gas (LNG) import terminal in Kent. The terminal is set to boost its regasification capacity to cater to approximately one-third of the UK’s total gas demand.

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Centrica noted that the strategic alliance with Repsol will lead to further fortification of UK’s energy security in the coming years. The agreement will play a key role in insulating against price fluctuations and propel the country towards its previously stated ambitious environmental objectives. Furthermore, it announced willingness to invest in additional projects in the country, which also will generate thousands of new jobs.

Centrica Energy, the primary supplier of electricity and gas to consumers in the UK and Ireland, had recently entered into long term deals with U.S.-based Delfin Midstream and a three-year supply deal with Norway-based Equinor.

Chris O'Shea, Centrica Group Chief Executive said that thedeal with Repsol will continue to improve the UK’s security of gas supply. Natural gas is an essential transition fuel in the move to net zero, he added.