Centrica signs Brazilian LNG supply agreement

LONDON: Centrica announces that it has entered into a major Sale and Purchase Agreement (“SPA”) with Petrobras, the leading Brazilian integrated oil & gas company.

The contract provides for the purchase by Petrobras of 0.8 million tons per annum (MTPA) of LNG for 15 years, commencing in 2027. The agreement comprises approximately 30% of Centrica’s US portfolio and will be sourced from Centrica’s Sabine Pass and Delfin supply agreements.

This new partnership underscores Centrica’s commitment to deliver secure and sustainable energy solutions in the transition to a lower carbon future. The agreement marks a significant step in expanding Centrica’s global LNG business, diversifying the locations it can deliver LNG to and supporting energy security in Brazil with an important new long-term partner.

Commenting on the agreement, Chris O’Shea, Centrica Group Chief Executive, said: “Centrica is investing to deliver the energy security, efficiency and decarbonisation solutions our customers need today and in the future, and LNG is, and will continue to be, a crucial foundation of the energy transition. 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.”

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.”