Centrica Strikes Deal for LNG Supply to China's Shenergy

The UK's Centrica has struck a deal to supply 0.5mn metric tons/year of LNG over a 15-year period to China's state-owned Shenergy, it said on September 30.

Deliveries will start in 2024, Centrica said, noting that this was its first contract in China, which is among the fastest growing LNG markets in the world. Centrica did not say from where the supplies would be procured although it has destination-free offtake agreements, for example with Mozambique LNG, that could be used to supply Shenergy.

The company's energy marketing & trading division reported a 259% year-on-year increase in operating profit in the first half to £115mn ($147mn), partly thanks to strong LNG trading.