07-02-2024

Energy security boost after Centrica and Repsol agree LNG supply deal

Centrica Energy and Repsol today announced the signing of a deal that will improve the UK’s energy security in the coming years. The deal will see Centrica purchase 1 million tonnes of Liquified Natural Gas (LNG) shipments between 2025 and 2027. All of these cargoes are expected to be delivered to the Grain LNG import terminal in Kent.

The deal marks an additional move by Centrica to build further resilience in the UK’s energy security. It follows a 15 year, $8bn deal with Delfin Midstream in July 2023, a three-year supply agreement with Equinor that will heat 4.5m 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.

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.”

"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." Chris O'Shea, Centrica Group Chief Executive

Cassim Mangerah, MD 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 SVP 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.”