Delfin Midstream Inc. has reached a tentative deal to supply 1 million metric tons/year (mmty) of LNG from its proposed floating offshore production facility in the Gulf of Mexico to UK utility Centrica plc as Europe continues efforts to secure more energy. 

Delfin

The non-binding heads-of-agreement covers liquefied natural gas deliveries on a free-on-board basis for a 15-year period. It follows a sales and purchase agreement Delfin announced last month with trading house Vitol Inc. to supply 0.5 mmty from the project. Vitol would also take an equity stake in the company under that deal.

Delfin CEO Dudley Poston said “market demand for long-term LNG continues to be strong and buying activity from Europe and other geographies has accelerated over the past few months.” The Delfin...