SEATTLE (Oil Monster): In order to secure a long-term supply of liquefied natural gas (LNG), Centrica Energy announced that it has signed a significant sale and purchase agreement (SPA) with Petrobras, a major energy company in Brazil.
The agreement states that Petrobras will buy 0.8 million tpy of LNG beginning in 2027 and continuing for 15 years. Nearly 30% of Centrica's U.S. portfolio will be accounted for under the arrangement. The company's Sabine Pass and Delfin supply agreements will provide the LNG for supply.
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Centrica's dedication to providing safe and sustainable energy solutions is demonstrated by the new agreement. Additionally, it represents a significant advancement in the company's diversity of locations and growth of its global LNG business. The SPA also plans to assist Brazil's energy security.
According to Centrica Group Chief Executive Officer Chris O'Shea, the deal shows the company's commitment to forming enduring alliances. He said that the medium-term de-risking of its portfolio exposure puts it in a position to keep expanding its holdings when fresh LNG market supply becomes available.
The arrangement is in line with Petrobras' objective to lessen its exposure to spot market volatility and support energy transition, according to Maurício Tolmasquim, Director of Energy Transition and Sustainability.
