WINDSOR (dpa-AFX) - Centrica plc (CNA.L), an energy company, Thursday announced that it has entered into a Sale and Purchase Agreement or SPA with Brazilian oil & gas company Petrobras. The company also completed a review of its UK pension plan, and announced the next phase of its investment programme in Ireland.
Centrica is currently trading 9.90% higher at 149.50 pence on the London Stock Exchange.
Under the SPA, Petrobras will buy 0.8 million tons of LNG per year from Centrica for 15 years, starting in 2027. The gas will come from Centrica's supply agreements at Sabine Pass and Delfin.
The deal makes up about 30 percent of Centrica's US LNG portfolio. It helps Centrica grow its LNG business, supply energy to more places, and support Brazil's energy security with a long-term partnership.
Regarding the pension plan, Centrica said it completed a review of its UK pension plans, based on data from March 31, 2024. The company and pension trustees agreed on a funding shortfall of 504 million pounds. By the end of 2024, the shortfall is expected to reduce to about 450 million pounds.
Under the new 2024 review, Centrica will pay around 140 million pounds per year to reduce the deficit until 2027. This is lower than the previous agreement, which required 175 million pounds per year.
In 2021, Centrica's pension shortfall was 944 million pounds. By June 2024, it had dropped to about 700 million pounds.
Further, the company announced the next phase investment program in Ireland, aiming to increase its flexible electricity generation capacity by 50% to 1GW. The program is expected to support Ireland's security of energy supply and facilitating system-wide decarbonisation.
The 10-year contract to build a 334MW gas power station in Galway was secured in January. The project will receive EUR 56 million per year, with a final investment decision in 2026 and operations starting in 2029.
Centrica's subsidiary Bord Gáis also won a 5-year contract for its 445MW Whitegate power station in Cork, which will receive EUR 50 million per year from October 2028.
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