The Anonymous Widower

Centrica And Coterra Energy Announce Natural Gas Sale And Purchase Agreements

The title of this post, is the same as that of this news item from Centrica.

These three bullet points, act as sub-headings.

• 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.

These three paragraphs say more about the deal and add more on its context.

Centrica LNG and Coterra today 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.

It certainly looks like Centrica are doing their best for UK energy security.

It also looks to me, that it is a low risk deal.

It should also help to keep us all warm in the UK, until renewable electricity and hydrogen come fully on stream.

November 1, 2024 - Posted by AnonW | Energy | Centrica, Coterra Energy, Liquified Natural Gas