Houston-based liquid natural gas exporter Delfin Midstream has reached an $8 billion agreement that will bring more energy security to the United Kingdom, which faces shortfalls because of sanctions on Russia over the Ukraine War.
Under the deal, the UK’s Centrica will buy 1 million metric tons of liquified natural gas a year for 15 years. Delivery will involve about 14 cargo trips per year from Delfin’s planed Deepwater Port, which is under development about 40 nautical miles off the coast of Louisiana.
The arrrangement could provide enough energy to heat 5% of UK homes for 15 years. The first shipments are expected to begin in 2027.
Centrica, the parent company of British Gas, said the agreement will help secure the UK’s energy supply in turbulent times. Europe is becoming increasingly reliant on liquified natural gas from the U.S. as Russia’s invasion of Ukraine continues to crimp energy supplies.
The U.S., meanwhile, is awash in natural gas supplies following years of a shale-oil boom generated by fracking technologies.
The UK has committed to a zero-emissions target by 2050, but most of its homes are heated with natural gas, which is likely to continue to be a part of the nation’s energy mix for decades to come.
“Centrica is investing heavily to future-proof the UK’s energy supply and address one of the underlying causes of the energy crisis,” said Centrica CEO Chris O’Shea said in a statement. “We stand ready to invest several billion pounds in additional projects, creating thousands of new UK jobs.”