Centrica Signs 10-Year Gas Supply Deal with Devon Energy

Centrica has signed a 10-year natural gas supply deal with Devon Energy starting in 2028, securing 50,000 MMBtu per day tied to European TTF pricing. The deal strengthens U.S.-UK energy links and follows Centrica’s $1.92 billion Isle of Grain LNG terminal acquisition.

(P&GJ) — Centrica plc confirmed that its trading arm, Centrica Energy, has signed a 10-year natural gas supply agreement with U.S.-based Devon Energy Corp.

Under the contract, Devon will deliver 50,000 MMBtu of natural gas per day beginning in 2028, equivalent to roughly five LNG cargoes per year. The volumes will be indexed to the Dutch Title Transfer Facility (TTF) benchmark, aligning supply with European market pricing.

"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 U.S. and the U.K.,” said Chris O’Shea, Centrica’s group chief executive.

Centrica said the volumes will be managed by its U.S. subsidiary, which recently opened an office in New York. The company added that the deal is part of its broader strategy to expand LNG and trading activities.

The agreement comes alongside Centrica’s recent acquisition of the Isle of Grain LNG terminal in partnership with Energy Capital Partners. The deal, valued at about $1.92 billion (enterprise value), was completed with National Grid.