U.K. energy and services company Centrica Energy entered into a natural gas sale and purchase agreement with US-based Devon Energy, the firm said Aug. 15.
Under the agreement, Devon will supply 50,000 MMBtu/d of natural gas over a 10‑year term starting in 2028—equivalent to five LNG cargoes per year.
The volumes will be indexed to European gas hub price (TTF), Centrica said.
“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,” the company said in a press release.
Chris O’Shea, Group Chief Executive of Centrica, said gas remains an essential transition fuel and through long-term agreements Centrica is ensuring “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 U.S. will be handled and optimized by Centrica Energy’s U.S. subsidiary that recently announced the opening of an office in New York.