Centrica plc confirmed that its trading arm, Centrica Energy, has entered into a natural gas sale and purchase agreement with US-based Devon Energy Corporation (NYSE: DVN).

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.

Note:

This week Centrica plc announced the acquisition of the Isle of Grain liquified natural gas terminal (“Grain LNG”) in partnership with Energy Capital Partners LLP from National Grid group (“National Grid”) for an enterprise value of £1.5 billion.

About Centrica Energy

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. We are a leading provider of energy management and optimisation services to business, in addition to managing commodity risk and providing wholesale market access for the Centrica group. We have 16 GW of capacity under contract in Europe of which approximately 80% is renewable assets.  Our mission is to energise a greener, fairer, future. We drive the green transition while offering sustainable and predictable energy costs for suppliers and offtakers. In short, we call ourselves energy movers by nature.

About Devon Energy

Devon Energy (NYSE: DVN) is a leading oil and gas producer in the U.S. with a premier multi-basin portfolio headlined by a world-class acreage position in the Delaware Basin. Devon’s disciplined cash-return business model is designed to achieve strong returns, generate free cash flow and return capital to shareholders, while focusing on safe and sustainable operations.