British energy company announces $8B gas deal with US, dubs it 'essential' for green transition

An $8 billion deal has been reached between Centrica, a British-based energy company, and US liquefied natural gas (LNG) developer Delfin Midstream. Centrica claims the agreement is essential for both the UK’s current energy needs and future green energy goals.

The British gas company announced the deal on Tuesday in a press release, explaining that it will “take delivery of around 14 LNG cargoes per year” from Delfin “and could provide enough energy to heat 5% of UK homes for 15 years.” CEO Chris O’Shea touted it as “good news for our customers and the country,” as recent events have emphasized the “critical importance of investing in the UK’s energy security.”

However, O'Shea also stated that the deal is part of a long-term strategy to reach net-zero carbon emissions.

“Natural Gas is an essential transition fuel in the move to net zero and securing international agreements such as this are vital to the UK’s energy security,” the CEO said. “This deal… shows that Centrica is investing heavily to future-proof the UK’s energy supply and address one of the underlying causes of the energy crisis.” 

The UK is part of the global push to hit net-zero emissions by 2050. However, the country’s energy economy was nearly 80% sourced from fossil fuels as of 2022, according to the BBC, showing just how much it still requires LNG to deliver power to its citizens.

The deal comes after the pair of companies reached a “Heads of Agreement” in 2022. Imports under the deal are set to begin in 2027, Centrica noted.

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