British energy group Centrica Energy has entered into a natural gas sale and purchase agreement [SPA] with US-based Devon Energy Corporation, the latest in a slew of market moves.
Under the agreement, Devon Energy will supply 50,000 (MMBtu) per day 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).
“This SPA 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,” according to a statement.
Chris O’Shea, Group Chief Executive, 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.”
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