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U.K. gas giant reaches $8 billion deal to import U.S. liquified natural gas

By Steve Goldstein

Centrica on Tuesday said it's reached an $8 billion deal to import U.S. liquified natural gas, the latest step taken in Europe to diversify supplies after a spike in costs stemming from Russia's invasion of Ukraine.

Centrica said it's reached a deal to import 1 million metric tons per year of LNG for 15 years from Delfin Midstream, getting the gas from the Delfin Deepwater Port, located 40 nautical miles off the coast of Louisiana.

It won't come soon: operations and first LNG are expected to commence at the Delfin Deepwater Port in 2027.

Centrica said that's enough gas to heat 5% of U.K. homes for 15 years. It follows a three-year supply agreement with Equinor as well as the reopening of a gas storage facility.

U.K. natural gas futures have dropped by two-thirds over the last year, but the passthrough of energy costs has helped drive inflation in the country to 8.7%, one of the highest rates in the industrialized world.

Delfin earlier in the year agreed on a 20-year, 0.6 million metric tons per year contract with a U.K. subsidiary of Hartree Partners Power & Gas Company.

-Steve Goldstein

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07-11-23 0729ET

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