Coterra will supply 100,000 MMbtu/d of natural gas for a period of 10 years, commencing in 2028.
Volume supplied sufficient to heat 400,000 homes per year.
Agreement expands Centrica’s growing LNG business.
Centrica LNG and Coterra announced the execution of two natural gas sale and purchase agreements. Under the contracts, Coterra will supply 100,000 MMbtu/d of natural gas linked to European gas prices such as TTF and NBP, for a period of 10 years, commencing in 2028.
This major gas deal will reduce the market risk in Centrica’s LNG portfolio by purchasing US gas on the same price indices under which the LNG is subsequently sold, and help underpin customer energy supplies for a decade. The volume supplied is sufficient to heat 400,000 homes per year, further cementing Centrica’s global role supporting energy security.
The deal follows similar agreements over recent years, demonstrating Centrica Energy’s innovative partnership approach, one of the key pillars of its successful and growing LNG business.
Commenting on the agreement, Centrica Group Chief Executive, Chris O’Shea, said:
“In an uncertain world Centrica is investing to provide energy security and certainty for its customers. These decade-long deals with Coterra are a further demonstration of the special trade relationship between Great Britain and the United States, and a welcome extension of our existing valued relationship with Coterra. Gas remains an essential transition fuel and, through agreements like this, we’re providing peace of mind for households, ensuring security of supply in key markets across the globe, and supporting the transition to net zero.”
Coterra’s Chairman, Chief Executive Officer, and President, Thomas Jorden, said: “The U.S. has an abundant, low-cost natural gas resource that can help support energy reliability and energy affordability around the world. This important new partnership between Centrica and Coterra is a positive step in serving critical energy needs. Additionally, this transaction will further diversify Coterra’s natural gas portfolio. We applaud the great work of both teams and are excited for our new partnership.”
