GasLog Westminster (for illustration purposes only)
From 2028, Devon will provide Centrica with 50,000 million British thermal units (MMBtu) of natural gas daily, equivalent to about five liquefied natural gas (LNG) cargoes per year, for 10 years. The volumes will be linked to the European gas hub price (TTF), offering Devon exposure to international pricing.
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 agreement aligns with Centrica’s goal to manage price risks in its LNG portfolio by tying feed gas costs to European market prices.
Centrica’s U.S. subsidiary, which recently opened a New York office, will handle the gas volumes. This follows Centrica’s acquisition, with Energy Capital Partners, of the U.K.’s Grain LNG terminal, Europe’s largest LNG regasification facility with a 15 million-tonne annual capacity.
The deal supports Centrica’s efforts to secure reliable energy supplies and enhance its LNG trading, contributing to stable energy markets across both nations.
