U.K. energy company Centrica (OTCPK:CPYYF) (OTCPK:CPYYY) said Tuesday it signed a 15-year supply deal with Delfin Midstream valued at £7B ($8.45B) for liquefied natural gas from a planned LNG export facility off the coast of Louisiana, as Europe tries to reduce its dependence on Russian gas.
Centrica (OTCPK:CPYYF) (OTCPK:CPYYY) said the heads of agreement calls for the purchase of 1M metric tons/year of LNG for 15 years from the Delfin Deepwater Port, which would be the first floating LNG export facility in the U.S.
Delfin is expected to reach a final investment decision by the end of this year, with operations expected to start in 2026.
Centrica (OTCPK:CPYYF) (OTCPK:CPYYY) is focused on boosting its LNG portfolio and "ensuring that we increase our access to a diversified range of reliable gas supplies," CEO Chris O'Shea said.
Last month, Centrica (OTCPK:CPYYF) (OTCPK:CPYYY) signed a £4B gas supply deal with Norway's Equinor.