Centrica strikes 15-year LNG supply deal with China’s Shenergy

British energy company Centrica has signed a binding 15-year sales and purchase agreement (SPA) for supplying 0.5 million tonnes per annum (MTPA) of liquefied natural gas (LNG) to Shanghai government-owned Shenergy Group.

The agreed LNG deliveries are anticipated to begin in 2024.

In January 2020, the two companies signed a heads of agreement, which is said to be the first long-term supply contract for the British energy company in China, which is considered to be among the fastest-growing LNG markets.

Chris O’Shea – Centrica group CEO said: “We are delighted to conclude this agreement with Shenergy. The roots of our shared history date back over 150 years, to when British Gas helped install gas lighting in the streets of Shanghai. Today’s deal is a new milestone for our companies and complements Centrica’s existing portfolio of LNG positions and contracts.”

Centrica strikes 15-year LNG supply deal with China’s Shenergy. Photo courtesy of Centrica plc.