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  • Centrica will buy 1 million tonnes of LNG from Repsol between 2025 and 2027
  • The LNG will be delivered to the Grain LNG import terminal in Kent
  • The deal is part of Centrica’s strategy to diversify its gas sources and improve the UK’s resilience to energy shocks
  • Centrica and Repsol are both committed to the transition to net zero emissions

Centrica, a leading UK energy company, has announced a deal with Repsol, a Spanish energy giant, to purchase one million tonnes of liquefied natural gas (LNG) shipments between 2025 and 2027. The LNG will be delivered to the Grain LNG import terminal in Kent, which is one of the largest in Europe and can supply up to 20% of the UK’s gas demand.

The deal is an additional move by Centrica to build further resilience in the UK’s energy security, following a 15-year, $8 billion deal with Delfin Midstream in July 2023, a three-year supply agreement with Equinor that will heat 4.5 million UK homes through to 2024 and the reopening and expansion of the Rough gas storage facility in October 2022 and June 2023 respectively. Rough now provides half of the UK’s total gas storage capacity with the potential to store over 50 billion cubic feet (bcf) of gas, enough to heat almost 10% of UK homes throughout winter.

Chris O’Shea, Centrica Group Chief Executive, said: “I’m proud that Centrica is continuing to improve the UK’s security of supply through this deal with Repsol. When our security of supply is threatened, it’s customers that lose out, so it’s reassuring that this agreement will ultimately help ensure that those on the front line of the energy crisis have some insulation from price fluctuations.”

“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. Alongside the other steps we’ve taken to make the UK more resilient – through deals with Delfin Midstream and Equinor – our actions demonstrate our commitment to the UK consumer. We stand ready to invest several billion pounds in additional projects, creating thousands of new UK jobs, with the right regulatory framework.”

Cassim Mangerah, MD Centrica Energy, said: “We are delighted to have closed this deal and increased our contractual relationship with Repsol. One of the key pillars of our successful and growing LNG business is our partnership approach. This is yet another great example of colleagues across Centrica Energy working closely with our counterparts at other companies to agree and expand our relationships. Our new deal with Repsol will complement the Atlantic leg of our diversified and flexible portfolio.”

Laura Rejon, Repsol Wholesale Gas & NG Trading SVP, said: “Reliable and affordable energy supplies are crucial to maintaining economic and social wellbeing, and we are delighted that our partnership with Centrica contributes to this end.”

Centrica is a leading energy services and solutions provider that serves more than 26 million customer accounts in the UK, Ireland and North America. It offers a range of products and services, including energy supply, energy efficiency, home services, smart home solutions, distributed energy and power generation. Centrica is also one of the largest suppliers of gas and electricity to businesses in the UK and Ireland. Centrica employs approximately 20,000 people across its brands.

Repsol is a global multi-energy company that operates across the entire value chain: exploration and production, refining, distribution and marketing, chemicals, electricity generation and renewables. It has a presence in more than 30 countries and employs more than 24,000 people. Repsol is committed to becoming a net zero emissions company by 2050.

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