Business
Devon Energy and Centrica Finalize Major LNG Supply Agreement

U.S.-based Devon Energy Corporation has entered into a significant ten-year natural gas agreement to supply liquefied natural gas (LNG) to the United Kingdom’s Centrica, the parent company of British Gas. The deal, announced on October 20, 2023, will see Devon Energy provide 50,000 MMBtu of natural gas per day starting in 2028, equivalent to five LNG cargoes annually. The pricing of these LNG volumes will be indexed to the European gas hub price, TTF.
The agreement is designed to help Centrica manage market price risks within its LNG portfolio by aligning feed gas costs with European gas prices. It also offers Devon Energy exposure to international pricing dynamics. In a statement, Chris O’Shea, Group Chief Executive of Centrica, emphasized the importance of such long-term agreements, stating, “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.”
Strategic Moves in the Energy Sector
The physical aspects of this agreement will be managed by Centrica Energy’s U.S. subsidiary, which recently expanded its operations by opening an office in New York. This partnership with Devon is not Centrica’s first engagement with a U.S. gas producer. In late 2022, the company signed a similar contract with Coterra Energy, which will supply 100,000 MMBtu of natural gas per day, also linked to European gas pricing mechanisms such as TTF and NBP, starting in 2028.
Moreover, the announcement of the contract with Devon follows Centrica’s recent collaboration with investment firm Energy Capital Partners LLP to acquire the UK’s largest LNG import terminal located at the Isle of Grain. This acquisition, valued at $2 billion (£1.5 billion), is part of Centrica’s strategy to invest in critical energy infrastructure that supports the energy transition. The company aims to secure attractive returns and create future growth opportunities while enhancing its broader portfolio.
Centrica’s commitment to long-term energy agreements and strategic acquisitions reflects its proactive approach to navigating the evolving energy landscape. As global demand for LNG continues to grow, partnerships like these are increasingly vital for securing energy supplies and managing market volatility.
-
World3 months ago
Scientists Unearth Ancient Antarctic Ice to Unlock Climate Secrets
-
Entertainment3 months ago
Trump and McCormick to Announce $70 Billion Energy Investments
-
Science3 months ago
Four Astronauts Return to Earth After International Space Station Mission
-
Lifestyle3 months ago
TransLink Launches Food Truck Program to Boost Revenue in Vancouver
-
Technology2 months ago
Apple Notes Enhances Functionality with Markdown Support in macOS 26
-
Top Stories1 week ago
Urgent Update: Fatal Crash on Highway 99 Claims Life of Pitt Meadows Man
-
Sports3 months ago
Search Underway for Missing Hunter Amid Hokkaido Bear Emergency
-
Politics2 months ago
Ukrainian Tennis Star Elina Svitolina Faces Death Threats Online
-
Technology3 months ago
Frosthaven Launches Early Access on July 31, 2025
-
Politics3 months ago
Carney Engages First Nations Leaders at Development Law Summit
-
Entertainment3 months ago
Calgary Theatre Troupe Revives Magic at Winnipeg Fringe Festival
-
Politics1 week ago
Shutdown Reflects Democratic Struggles Amid Economic Concerns