Devon Energy just made a 10-year deal to provide natural gas to British-owner Centrica plc as Centrica expands its natural gas operations around the globe.
As announced by Centrica, under the agreement, Devon Energy will supply 50,000 (MMBtu) per day of natural gas over a 10‑year term starting in 2028. This is equivalent to five LNG cargoes per year. The volumes will be indexed to European gas hub price (TTF). This sale and purchase agreement supports Centrica’s objective of managing market price risk in its LNG portfolio by aligning feed gas pricing with European gas prices whilst providing Devon Energy with international price exposure.
Chris O’Shea, Group Chief Executive of Centrica, said: “Gas remains an essential transition fuel and, through long-term agreements like this, Centrica ensures competitively‑indexed gas supply for our LNG business and builds on the deep and important energy trade links between the US and the UK.”
The physical volumes of this deal in the US will be handled and optimised by Centrica Energy’s US subsidiary that recently announced the opening of an office in New York. The deal follows similar agreements over recent years, demonstrating Centrica Energy’s innovative approach to building partnerships and growing its LNG and trading business.
Centrica had earlier signed a 15-year agreement to supply American LNG to Petrobras. Also, last year, the firm reached a deal with Coterra Energy to secure more gas.
Centrica Energy is the trading and optimisation arm of Centrica plc, operating out of eight offices across all time zones to move energy from source to use. It has a 16 GW of capacity under contract in Europe of which approximately 80% is renewable assets.
