Centrica, Devon Energy Announce 10-Yr Natural Gas Sale & Purchase Agreement

(RTTNews) - British?energy and services company Centrica Plc (CNA.L) Friday said that its trading division, Centrica Energy, has signed a long-term natural gas sale and purchase agreement with US-based Devon Energy Corp.(DVN).

Under the deal, Devon will supply 50,000 MMBtu of natural gas per day for 10 years, starting from the year 2028. This is equivalent to around five LNG cargoes per year, the company added.

The company said that the gas will be priced based on the European TTF gas hub, helping to align its LNG portfolio along with European market prices and will also give Devon Energy exposure to international pricing.

Centrica Plc said that the physical gas volumes in the US will be managed by Centrica Energy's US subsidiary, which has recently opened an office in New York.

Commenting on the deal, Chris O'Shea, Group Chief Executive, 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."