Centrica, a UK energy company, has signed an agreement to purchase one million tonnes of LNG per year from Repsol.
The LNG will be delivered to the Grain LNG import terminal in Kent, with deliveries expected between 2025 and 2027.
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Centrica said the deal with Repsol is an extension of its strategy to bolster the UK’s energy resilience.
It follows an $8bn (£6.34bn), 15-year agreement with Delfin Midstream signed in July 2023.
The deal with US-based Delfin Midstream will see Centrica receive approximately 14 LNG cargoes annually.
In June 2022, the company secured a three-year natural gas supply from Equinor.
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By GlobalDataCentrica Group CEO Chris O’Shea said: “I am proud that Centrica is continuing to improve the UK’s security of supply through this deal with Repsol. 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.
Repsol wholesale gas & NG trading SVP Laura Rejon said: “Reliable and affordable energy supplies are crucial to maintaining economic and social well-being, and we are delighted that our partnership with Centrica contributes to this end.”
Despite the UK’s diverse gas supply sources, including connections with Norway and other European countries, as well as three LNG import terminals, the country has one of the lowest levels of gas storage in Europe.
The UK’s storage can cover an average of 12 days, or 7.5 days during peak winter demand, which is significantly less than Germany’s 89 days, France’s 103 days and the Netherlands’ 123 days of gas storage.
In a move to further enhance energy security, Centrica reopened the Rough gas storage facility in late 2023.
