Under the agreement, Peyto will deliver 50,000 MMBtu of natural gas per day to Centrica’s trading arm, Centrica Energy, over a 10-year period from 2029, equivalent to approximately five LNG cargoes annually, according to a Centrica statement.
Deliveries will be made at the NIT “AECO” hub operated by TC Energy in Alberta, Canada.
Moreover, Centrica said the gas supplies will be priced against the Dutch Title Transfer Facility (TTF), the benchmark for European gas markets.
This agreement supports Centrica’s strategy of strengthening its LNG portfolio through long-term, LNG-linked gas supply arrangements, itr said.
By linking feed gas pricing to European benchmarks and maintaining flexibility across global markets, the deal enhances Centrica’s ability to manage market exposure and optimize its LNG portfolio, Centrica noted.
Through its LNG trading and optimization capabilities, including global desks operating across key markets, Centrica will “continue to optimize LNG cargo flows while mitigating price risk across the trading hubs and providing security of supply to our customers globally.”
For Peyto, the agreement provides long-term access to international LNG-linked pricing, supporting its strategy to diversify market exposure beyond North American benchmarks, the statement said.
Centrica continues to boost its LNG business
Earlier this year, Centrica signed a similar deal with Canadian producer Whitecap Resources.
Under this agreement, Whitecap will deliver 50,000 MMBtu of natural gas per day to Centrica for a period of ten years – equivalent to roughly five LNG cargoes each year.
Under the agreement, Whitecap will deliver 50,000 MMBtu of natural gas per day to Centrica for a period of ten years – equivalent to roughly five LNG cargoes each year, according to a statement by Centrica.
Last year, Centrica also entered into a similar deal with US-based Devon Energy.
Under this agreement, Devon will supply 50,000 MMBtu per day of natural gas to Centrica’s trading arm over a 10‑year term starting in 2028.
Centica is investing heaviliy in its LNG business.
In December last year, a consortium of Centrica and US-based investment firm Energy Capital Partners, part of Bridgepoint Group, completed the purchase of National Grid’s Grain LNG terminal in the UK.
The acquisition has an enterprise value of 1.5 billion pounds ($2 billion).
After taking into account 1.1 billion pounds of new non-recourse project finance debt, Centrica’s 50 percent share of the equity investment is approximately 200 million pounds, according to the firm.
During the same month, a unit of Thailand’s PTT signed a sales and purchase agreement with a unit of Centrica to supply it with LNG in Asia.
PTT International Trading (PTTT) and Centrica LNG signed the SPA for a 10-year term, starting in 2028.
