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Investing.com -- British energy and services company Centrica Plc (LON:CNA) on Friday said its trading arm, Centrica Energy, has signed a natural gas sale and purchase agreement with the U.S.-based Devon Energy Corp. (NYSE:DVN).
Under the 10-year agreement starting in 2028, Devon Energy will supply 50,000 million British thermal units (MMBtu) of natural gas per day, equivalent to five liquefied natural gas (LNG) cargoes annually.
The contract links volumes to the European gas hub price (TTF), aligning feed gas pricing with European benchmarks while giving Devon Energy international price exposure.
Chris O’Shea, Centrica’s group chief executive, said gas remains an “essential transition fuel,” adding that long-term deals like this provide competitively indexed supply for its LNG business and strengthen energy trade ties between the United States and the United Kingdom.
The U.S. volumes from the deal will be handled and optimized by Centrica Energy’s American subsidiary, which recently opened an office in New York.
The U.K.-based company said the arrangement follows similar agreements in recent years, underscoring its strategy to expand LNG and trading operations.
Separately, Centrica this week announced the acquisition of the Isle of Grain LNG terminal in partnership with Energy Capital Partners LLP from National Grid group for an enterprise value of £1.5 billion.