Centrica LNG, a unit of Centrica, and Coterra signed 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.
Centrica said in a statement this “major” 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, according to the firm.
Centrica said the deal follows similar agreements over recent years, demonstrating Centrica’s partnership approach, one of the key pillars of its growing LNG business.
Earlier this year, Centrica signed a deal with Spain’s Repsol to buy LNG from the latter.
The deal will see Centrica buy 1 million tonnes of LNG shipments between 2025 and 2027.
Centrica expects to receive all these cargoes at National Grid’s Grain LNG import terminal in Kent.
The firm has capacity rights at UK’s Grain LNG terminal.
This deal also followed a 15-year, $8 billion LNG deal with Delfin Midstream, the US developer of a floating LNG export project in the Gulf of Mexico, in July 2023.
Vitol deal
Vitol announced in a separate statement the execution of a long-term LNG-indexed natural gas sale and purchase agreement with Coterra.
Under the SPA, Coterra will supply 100,000 MMBtu/d of natural gas, equivalent of about 7 million tonnes of LNG per annum, to Vitol with the purchase price indexed to JKM.
Vitol said the deal is for a period of 11 years, beginning in 2027.
“Since 2005, Vitol has been serving LNG customers world-wide and this transaction highlights Vitol’s ability to provide innovative gas and LNG solutions as we continue to strengthen our position,” Ben Marshall, head of Vitol Americas, said.
Vitol boosted its LNG volumes in 2023 to about 17.3 million tonnes of LNG on the back of higher demand in Europe.
The firm reported LNG volumes of about 14 million tonnes in 2022, 12.9 million tonnes in 2021, 10 million tonnes in 2020, and 10.5 million tonnes in 2019.
