Centrica and Devon Energy Sign 10-Year Natural Gas Deal

Centrica has signed a 10-year agreement with Devon Energy to buy 50,000 million British thermal units per day of natural gas from 2028. The deal will help Centrica expand its global gas business and manage price risk in its liquefied natural gas portfolio. It also exposes Devon to international markets. The agreement aligns feed gas rates with European futures and reinforces Centrica's position as a major player in the global gas market.

Centrica plc has entered into a significant long-term natural gas sale and purchase agreement with US-based Devon Energy Corporation (NYSE: DVN). Under the terms of the agreement, Devon Energy will supply 50,000 million British thermal units (MMBtu) per day of natural gas over a 10-year period, starting in 2028. This supply, equivalent to five LNG cargoes per year, will be indexed to the European gas hub price (TTF) [1].

The agreement supports Centrica's objective of managing market price risk in its LNG portfolio by aligning feed gas pricing with European gas prices. This move allows Devon Energy to gain exposure to international markets and reinforces Centrica's position as a major player in the global gas market [1].

Chris O’Shea, Group Chief Executive of Centrica, commented, "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" [1].

The physical volumes of this deal in the US will be handled and optimized by Centrica Energy's US subsidiary, which recently announced the opening of an office in New York. This deal follows similar agreements over recent years, demonstrating Centrica Energy's innovative approach to building partnerships and growing its LNG and trading business [1].

The agreement aligns with Centrica's broader strategy to expand its global gas business. Additionally, it complements Centrica's recent acquisition of the Grain LNG facility in Kent for £1.7bn, further strengthening its control over the UK's energy supplies [2, 3].

Centrica's share price rose 2.9% on the announcement of the deal, reflecting investor confidence in the company's strategic moves to secure long-term gas supply and manage price risk [3].

References:
[1] Centrica plc. (2025). Centrica enters into long-term natural gas sale and purchase agreement with Devon Energy Corporation. Retrieved from [https://www.centrica.com/media-centre/news/2025/centrica-enters-into-long-term-natural-gas-sale-purchase-agreement/](https://www.centrica.com/media-centre/news/2025/centrica-enters-into-long-term-natural-gas-sale-purchase-agreement/)
[2] Reuters. (2025). Centrica enters into long-term natural gas sale and purchase agreement with Devon Energy. Retrieved from [https://www.tradingview.com/news/reuters.com,2025:newsml_FWN3U61CK:0-centrica-enters-into-long-term-natural-gas-sale-purchase-agreement-with-devon-energy/](https://www.tradingview.com/news/reuters.com,2025:newsml_FWN3U61CK:0-centrica-enters-into-long-term-natural-gas-sale-purchase-agreement-with-devon-energy/)
[3] BBC News. (2025). British Gas-owner Centrica buys one of the biggest LNG facilities in the UK for £1.7bn. Retrieved from [https://www.bbc.com/news/articles/cp37d4kn18wo.amp](https://www.bbc.com/news/articles/cp37d4kn18wo.amp)