International energy supplier Centrica has signed a 15-year liquefied natural gas (LNG) sales and purchase agreement to supply Brazilian oil and gas company Petrobras.
Under terms of the signed contract, Centrica will supply Petrobras with 0.8 million tonnes per annum of LNG, with deliveries set to begin in 2027.
The agreement covers around 30% of Centrica’s portfolio in the US. Specifically, it will be supplied from Centrica’s Sabine Pass and Delfin contracts.
Centrica does not produce LNG, but it trades and transports it. Centrica’s LNG business includes buying and selling contracts, operating ships, and analysing the market.
In 2013, the company signed a deal with Cheniere Energy to purchase 89 billion cubic feet of LNG from Sabine Pass in Louisiana. The deal commenced in 2018 and will last for 10 years.
Similarly, in 2023, Centrica signed a similar deal with Delfin Midstream for the purchase of one million tonnes per annum of LNG from the Delfin Deepwater Port, located 40 nautical miles off the coast of Louisiana.
Read more: Centrica inks 15-year US LNG deal with Delfin
Chris O’Shea, Chief Executive of Centrica Group, said, “This agreement demonstrates our approach to building long-term partnerships while derisking our portfolio exposure in the medium-term.”
He said this has allowed the company to continue growing its portfolio as new LNG supply comes into the market over the coming years.
Maurício Tolmasquim, Director of Energy Transition and Sustainability, added, “The agreement with Centrica is aligned with Petrobras’ priorities to reduce its exposure to the spot market volatility and increase its competitiveness.”
“We also consider the contribution of this important product to promoting the energy transition.”
