Britain's Centrica signs 10-yr U.S. gas deal with Coterra

10/30/2024

British utility Centrica and U.S. producer Coterra Energy have entered into two gas sale and purchase agreements, which will reduce market risk in Centrica's liquefied natural gas (LNG) portfolio, Centrica said on Wednesday.

Under the contracts, Coterra will supply 100,000 MMBtu per day of natural gas linked to European gas prices such as the Dutch TTF and British NBP hubs, for a period of 10 years, commencing in 2028, the Centrica statement said.

"This major gas deal will reduce the market risk in Centrica's LNG portfolio by purchasing U.S. gas on the same price indices under which the LNG is subsequently sold," the company wrote.

Centrica did not disclose a financial value for the transaction.