UK energy company Centrica has signed a 15-year sale and purchase agreement (SPA) with Brazilian oil and gas company Petrobras.

Under this contract, Centrica will supply 800,000 tonnes per annum (tpa) of liquefied natural gas (LNG) to Petrobras, starting from 2027.

The deal represents around 30% of Centrica’s US LNG portfolio, with supplies coming from its Sabine Pass and Delfin supply agreements.

In July 2023, Centrica entered into a long-term SPA with Delfin Midstream for one million tonnes per annum (mtpa) of LNG for 15 years from the Delfin Deepwater Port off the coast of Louisiana.

Centrica Group chief executive Chris O’Shea said: “This agreement demonstrates our approach to building long-term partnerships while derisking our portfolio exposure in the medium-term, in turn positioning us to continue growing our portfolio as new LNG supply comes into the market over the coming years.”

The partnership represents a considerable expansion of Centrica's global LNG business, enhancing the company's ability to deliver LNG to diverse locations and bolstering Brazil's energy security through a new long-term partnership.

Petrobras director of energy transition and sustainability Maurício Tolmasquim said: “The agreement with Centrica is aligned with Petrobras' priorities to reduce its exposure to the spot market volatility, increase its competitiveness and be the best option for its customers. We also consider the contribution of this important product to promoting the energy transition."

In October last year, Centrica signed two natural gas SPAs with Coterra for the purchase of 100,000 million British Thermal Units per day of natural gas for ten years, starting from 2028.

In February 2024, Centrica agreed to purchase 1mtpa of LNG from Repsol. The LNG will be delivered to the Grain LNG import terminal in Kent, with shipments scheduled between 2025 and 2027.