Thanks, Biden! UK strikes £7bn gas deal with US in major boost for 'energy independence'

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Centrica struck the deal US liquified natural gas (LNG) infrastructure firm Delfin, which will supply the UK from 2026. The agreement will see the British energy giant buy one million tonnes of LNG annually from the Delfin Deepwater Port off the coast of Louisiana in the US. While the UK only gets four percent of its gas from Russia, it has been scrambling all remaining ties with Moscow amid the Ukraine war.

The deal could be significant in boosting the UK’s future energy security, which could be vital in the coming years as the impacts of impending winter shortages await.

Chris O’Shea, Centrica Group Chief Executive, said: “Additional US gas export capacity will help increase UK, European and global energy security, reflecting the increasing importance of LNG in the global gas supply chain.

“Natural gas has now been recognised as an essential transition fuel on the path to net zero just at the point geopolitical uncertainty is impacting the global gas market.”

Dudley Poston, Chief Executive Officer of Delfin, said: “Market demand for long-term LNG continues to be strong and buying activity from Europe and various other geographies has accelerated over the past few months.”

Business Secretary Kwasi Kwarteng said: “A key component of our Energy Security Strategy is that natural gas is a key transition fuel on the road to clean, affordable, home-grown energy.

“From renewables to nuclear, we have ambitious plans for greater energy independence, but we are also realistic about our energy needs now and in the years ahead.

“That means we need to secure more diverse and reliable sources of natural gas from friends, allies and strategic partners.

“Today’s deal between Centrica and Delfin is positive news for the UK, helping to ensure our diversity of supply from reliable sources – like our friends in the United States – for many years to come.”

It comes after new analysis warned that Britons may have to fork out up to £4,200 by January for the energy price cap (maximum annual tariff).

With fears of winter shortages on the horizon, and even an emergency plan for four days of blackouts in a “reasonable worst-case scenario”, the UK will be hoping the ramping up of domestic supplies will help to avert a future disaster.

READ MORE: Nuclear horror: Timeline set for Russia to ‘launch strike’

Mr Aasland added: “The government will therefore ensure that we have arrangements that prioritize the filling of our hydropower reservoirs and the security of supply for electricity, and limit exports when the water level in the reservoirs drops to very low levels.”

And Norwegian supplies are sent through a 450-mile interconnector linking the country to Britain, it could spark extra concerns over winter as the UK had been planning to draw more electricity from the interconnector over the colder months.

Kathryn Porter, An energy consultant at Watt-Logic, said: “Longer term, we need to develop more domestic generation and rely less on imports.”



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