UK energy company, Centrica has signed a sale and purchase agreement (SPA) with Brazilian oil and gas giant, Petrobras.
This contract involves Petrobras purchasing 0.8 mill tonnes per annum of LNG for 15 years, commencing in 2027.
LNG will be supplied from around 30% of Centrica’s US portfolio, which includes its Sabine Pass and Delfin supply agreements.
The SPA marks a significant step in expanding Centrica’s global LNG business, diversifying its delivery locations and supporting Brazilian energy security with an important new long-term partner, the company said.
Chris O’Shea, Centrica Group CEO, said: “Centrica is investing to deliver the energy security, efficiency and de-carbonisation 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 de-risking 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,” he said.
Petrobras' Director of Energy Transition and Sustainability, Maurício Tolmasquim, added: “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," he said.
