Centrica plc agrees LNG vessel charter deal

Centrica has signed a deal with US-listed GasLog Ltd to charter a new-build, 180,000 cubic meter, liquefied natural gas (LNG) carrier for seven years starting in late 2019.

Jonathan Westby, Co-Managing Director Energy Marketing and Trading and Global Head of LNG said: “I am delighted that we are able to conclude this long term charter agreement with GasLog and we look forward to building a successful partnership with them as Centrica continues to develop its presence in the global LNG market.”

The delivery of the GasLog vessel is expected to coincide with first commercial delivery of the Centrica supply contract to purchase an annual volume of 91,250,000 mmbtu (89 billion cubic feet) LNG for export from the Sabine Pass liquefaction plant in Louisiana in the United States.

The contract is for an initial 20 year period, with a 10 year extension option, and is on a ‘Free on Board’ (FOB) basis, giving Centrica full destination rights for the cargoes.