Centrica strikes deal with Repsol for 1m tonnes of LNG

Centrica Energy has struck a major deal with Spanish energy firm Repsol to procure 1 million tonnes of LNG shipments.

The company has revealed that the deal, announced on Wednesday (7 February), will see the gas cargoes delivered to the Grain LNG import terminal in Kent between 2025 and 2027.

Centrica has made several similar deals in recent years following the market turmoil as a result of the pandemic and war in Ukraine.

In July last year the company struck a 15 year, $8bn deal with Delfin Midstream and it also previously secured a three-year supply agreement with Equinor to heat 4.5 million UK homes through to 2024 and the reopening and expansion of the Rough gas storage facility in October 2022 and June 2023 respectively.

“Rough now provides half of the UK’s total gas storage capacity with the potential to store over 50 billion cubic feet (bcf) of gas, enough to heat almost 10% of UK homes throughout winter,” the company added.

Chris O’Shea, Centrica Group chief executive, said: “I’m proud that Centrica is continuing to improve the UK’s security of supply through this deal with Repsol. When our security of supply is threatened, it’s customers that lose out, so it’s reassuring that this agreement will ultimately help ensure that those on the front line of the energy crisis have some insulation from price fluctuations.

“Natural Gas is an essential transition fuel in the move to net zero and securing international agreements such as this will be vital if the UK is to reach its ambitious goals. Alongside the other steps we’ve taken to make the UK more resilient – through deals with Delfin Midstream and Equinor – our actions demonstrate our commitment to the UK consumer. We stand ready to invest several billion pounds in additional projects, creating thousands of new UK jobs, with the right regulatory framework.”

Cassim Mangerah, managing director of Centrica Energy, said: “We are delighted to have closed this deal and increased our contractual relationship with Repsol. One of the key pillars of our successful and growing LNG business is our partnership approach.

“This is yet another great example of colleagues across Centrica Energy working closely with our counterparts at other companies to agree and expand our relationships. Our new deal with Repsol will complement the Atlantic leg of our diversified and flexible portfolio.”

Laura Rejon, Repsol wholesale gas & NG trading senior vice president, said:  “Reliable and affordable energy supplies are crucial to maintaining economic and social wellbeing, and we are delighted that our partnership with Centrica contributes to this end.”