Our operations

Centrica Energy is looking to LNG imports to help meet the growing supply gap in the UK and its other key markets. This builds on its historic pioneering role in developing the first trade between the UK and Algeria over forty years ago.

LNG is imported by ship as a super-cold liquid, stored at atmospheric pressure and delivered to LNG import terminals. This allows vast reserves of gas remote from markets, to be safely delivered to where it is required. Historically this was done in the UK only at Canvey Island but increased demand for supply has led to the development of a number of LNG import terminals around the UK coastline, including the Isle of Grain terminal in Kent.

Isle of Grain importation facility

Recently Centrica has signed up to become the largest holder of import capacity at the Isle of Grain import facility in the UK.

Centrica's total committed import capacity at the Isle of Grain is 5.8 bcm a year or just under 6% of the total UK present demand. We have established a special trading unit in the UK to source LNG and trade gas globally around our international position. This unit is involved in shipping activities across the globe. We have also put together the contractual frameworks necessary to be able to do this with the key international energy majors involved in LNG.

Centrica Energy trading floor

Ship carrying LNG

Significant requirement for LNG importation

Graph showing supply and demand for LNG

Key:

Light blue = supply
Dark blue = demand

The decline in supply from geographically favourably located supply sources, such as the UKCS and Norwegian North Sea, means that Centrica and other UK suppliers are being compelled to source gas supplies from further a field. New sources include Egypt, Trinidad and Tobago, Nigeria and Qatar. Centrica is playing a leading role in this activity in the UK and in developing overseas reserves for import into the UK and other markets as LNG.

North America too faces the same problem of declining pipeline supplies and is now one of the largest importers of LNG. As large buyers of natural gas in North American, we are actively pursuing LNG opportunities there. These include obtaining terminal capacity in areas close to our growing markets and endeavouring to obtain long term LNG supply. Our growing NW European businesses in the Netherlands, Belgium, Germany and Spain will also require LNG imports in the coming years.

In the Atlantic Basin as a whole, we are looking at trading/short-term opportunities in order to obtain supply for our markets as well as longer-term contractual arrangements with third parties. We are also developing our own upstream equity activity in conjunction with JV partners.

Map showing gas demand in the Atlantic Basin