UK’s Centrica signs 15-year LNG supply deal with Honduras

London-headquartered Centrica Energy (CNE) has reached an agreement to supply LNG to Exodus for Honduras, the UK energy firm announced on November 27.

The long-term deal will span 15 years, beginning in 2026 and will see the FTSE 100 member deliver approximately six LNG cargoes per year to Exodus.

The LNG will be delivered via a ship-to-ship operation into the Bilboa Knutsen, a floating storage unit located in Puerto Cortes, a port located about 50 km north of San Pedro Sula, Honduras’s second largest city.

The super-chilled fuel will be transported to the Brassavola Combined Cycle Power Plant, which is a 150 MW thermal power plant. The facility’s combined cycle is currently under construction and will expand the power plant’s capacity to 240 MW upon completion.

The deal marks an historic milestone for the Central American country as its first-ever import of natural gas to be used for power generation. It will diversify the country’s energy mix and help speed up its energy transition as Tegucigalpa seeks to wean the country from coal use.

“This agreement reflects Centrica Energy’s commitment to expanding global LNG access through strategic partnerships,” Arturo Gallego, Centrica Energy’s Global Head of LNG said.

“By leveraging our global reach and operational expertise, we’re proud to support Exodus and Honduras in its journey toward a more sustainable and resilient energy future,” Gallego added.

Once operational, the Bilboa Knutsen floating storage unit will provide storage of LNG at a new terminal currently being built on Honduras’ Caribbean coast.

The project marks a key step forward in strengthening Honduras’ energy security, improving generation efficiency and increasing the capacity for industrial growth.

For Centrica, it marks another deal in what has been a busy year. The London-based company also inked deals with the US’s Devon Energy, Norway’s Equinor, and Brazil’s Petrobras.

The British firm additionally purchased the UK’s largest LNG terminal, Grain LNG, from electricity and gas utility National Grid for GDP1.7bn ($2.3bn) in August.