Centrica Finalizes LNG Supply Agreement with Repsol

Centrica Energy, headquartered in the UK, and Repsol, based in Spain, have forged a significant Liquified Natural Gas (LNG) supply agreement, entailing the procurement of 1 million tons of Liquified Natural Gas (LNG) shipments spanning the years 2025 to 2027. As per the agreement's stipulations, all cargoes are designated for delivery to the Grain Liquified Natural Gas (LNG) import terminal. This terminal, slated to augment its regasification capacity to cater to roughly one-third of the UK's gas demand, serves as a pivotal conduit to both the UK energy market and the broader European region.

Centrica underscores the strategic significance of its collaboration with Repsol in fortifying the UK's energy security. The company emphasizes that during periods of threatened supply security, it is consumers who bear the brunt of uncertainties. Hence, such agreements play a pivotal role in insulating against price fluctuations. Natural Gas, deemed a critical transition fuel in the journey toward achieving net-zero emissions, necessitates international agreements like this to propel the UK toward its ambitious environmental objectives. Centrica accentuates its commitment to reinforcing the UK's resilience, citing past ventures with Delfin Midstream and Equinor, alongside their readiness to invest billions in additional projects, potentially generating thousands of new jobs, contingent upon the presence of an appropriate regulatory framework.

Both the reliability and affordability of energy supplies are paramount for sustaining economic and social wellbeing. Repsol expresses satisfaction in contributing to this objective through its partnership with Centrica.

It's noteworthy that this agreement follows Centrica's notable 15-year, $8 billion deal with the U.S.-based Delfin Midstream in July 2023, along with a three-year supply arrangement with Norway's Equinor. Additionally, the reopening and expansion of the Rough gas storage facility in October 2022 and June 2023, respectively, underscore Centrica's multifaceted approach to bolstering the UK's energy infrastructure.

Centrica plc, headquartered in Windsor, Berkshire, is a British multinational energy and services company. Its primary activity revolves around supplying electricity and gas to consumers in the United Kingdom and Ireland.

Repsol, with a significant presence in Spain, operates across various lines of business, including exploration and production, refining, chemicals, service stations, lubricants, LPG, sales, and marketing of specialized products, as well as natural gas and electricity. Repsol is also at the forefront of various initiatives related to new forms of energy production. As a leading company in the renewable energy sector, Repsol is dedicated to paving the way toward achieving net-zero emissions by 2050.