British multinational energy services firm Centrica has signed a binding sales and purchase agreement (SPA) to supply 500,000 tonnes per annum of liquefied natural gas (LNG) to Chinese firm Shenergy.
Centrica noted that LNG deliveries are expected to start in 2024.
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The 15-year sales and purchase agreement follows heads of agreement (HoA) concluded in January this year.
It represents the first long-term supply contract for Centrica in China, one of the world’s fastest-growing markets for LNG.
Centrica Group CEO Chris O’Shea 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.”
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By GlobalDataIn June, Centrica announced plans to cut around 5,000 jobs, which represents roughly 20% of its global workforce.
These job losses follow 4,000 planned redundancies announced in February 2018 in the wake of declining operating profits.
Shenergy recently signed a 12-year term HoA with Malaysia’s Petronas LNG to import 1.5Mtpa of LNG to its Wuhaogou terminal. The agreement is proposed to take effect from 2022.
