UK’s Centrica announced on Thursday its first long-term liquefied natural gas (LNG) supply contract in China, Kallanish Energy reports.
The company inked a 15-year agreement to supply 0.5 million tonnes per annum (Mtpa) with Shenergy Group. Deliveries are set to start in 2024, Centrica said in a statement.
Shenergy is the sole energy platform owned by the Shanghai state-owned Assets Supervision and Administration Commission. It holds a monopoly concession for gas distribution in Shanghai.
“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,” commented Centrica’s CEO Chris.
The deal is a new “milestone” for the companies and complements Centrica’s existing portfolio of LNG positions and contracts, he added.
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