Centrica has signed a long-term agreement to buy and sell natural gas with Devon Energy.

Centrica has announced that its trading division, Centrica Energy, has signed a natural gas sale and purchase agreement with Devon Energy Corporation from the US.

According to the agreement, Devon Energy will provide 50,000 MMBtu of natural gas daily over a 10-year period starting in 2028, which is equivalent to five LNG cargoes each year. The prices will be linked to the European gas hub price (TTF). This agreement helps Centrica manage market price risks in its LNG portfolio by aligning gas pricing with European rates while giving Devon Energy exposure to international prices.

Chris O’Shea, Centrica's Group Chief Executive, stated that gas is a vital transition fuel, and through long-term agreements like this, Centrica secures a competitively indexed gas supply for its LNG business and strengthens the significant energy trade relationship between the US and the UK.

The physical volumes from this agreement in the US will be managed and optimized by Centrica Energy’s US subsidiary, which has recently opened an office in New York. This deal follows similar agreements made in recent years, showcasing Centrica Energy’s innovative strategy for building partnerships and expanding its LNG and trading operations.