Brazil’s Petrobras Signs Long-Term LNG Agreement with Centrica

Brazil’s state-owned energy giant Petrobras has signed a long-term liquefied natural gas (LNG) sales and purchase agreement (SPA) with the U.K.-based energy company Centrica.

Petrobras is slated to purchase 0.8 million tons per annum (mtpa) of LNG for 15 years under the deal starting in 2027. The volumes will come from Centrica’s US portfolio, encompassing Sabine Pass and Delfin supply agreements inked with Cheniere and Delfin Midstream, respectively.

The agreement is subject to the taking of the final investment decision (FID) for the Delfin LNG project, currently under development by Delfin Midstream.

Petrobras’ Director of Energy Transition and Sustainability, Maurício Tolmasquim, noted: “The agreement with Centrica is aligned with Petrobras’ priorities to reduce its exposure to the spot market volatility, increase its competitiveness and be the best option for its customers.”

Centrica sees the deal as a significant step in expanding its global LNG business, diversifying the countries of receipt for its LNG, and supporting energy security in Brazil.

“Centrica is investing to deliver the energy security, efficiency and decarbonisation solutions our customers need today and in the future, and LNG is, and will continue to be, a crucial foundation of the energy transition,” said Chris O’Shea, Centrica Group’s Chief Executive Officer.

“This agreement demonstrates our approach to building long-term partnerships while derisking our portfolio exposure in the medium-term, in turn positioning us to continue growing our portfolio as new LNG supply comes into the market over the coming years.”

In addition to LNG, Petrobras has been keeping busy with oil-related developments. This month, the energy giant found oil in a well in the western region of the Búzios field in the pre-salt Santos Basin offshore Brazil and brought online the FPSO Almirante Tamandaré working in the same field.