US oil and gas firm Coterra Energy has signed a series of new LNG gas supply agreements, linking prices to long-term Asian and European indices.
In the UK, the firm executed two natural gas sale and purchase agreements with utility firm Centrica LNG. Under the terms of the deals, Coterra will provide 100,000 MMbtu/d of natural gas indexed to European gas prices, such as TTF and NBP, over a 10-year period starting 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,” Chris O'Shea, Group CEO of Centrica, said. “These decade-long deals with Coterra are a further demonstration of the special trade relationship between Great Britain and the United States.”
Separately, Coterra also signed a natural gas Sale and Purchase agreement with Swiss-based Dutch multinational Vitol. This contract will see Coterra deliver 100,000 MMBtu/d of natural gas (equivalent of approximately .7 million tonnes of LNG per annum) to Vitol with the purchase price indexed to LNG Japan/Korea Marker (JKM) for a period of 11 years, beginning in 2027.
Coterra’s Chairman, CEO, and President, Thomas Jorden, hailed the deal as a new step in his firm’s “valuable relationship with Vitol” and noted the abundant, low-cost natural gas resources in the US would “help support energy reliability and energy affordability around the world” and “further strengthen our nation’s standing on the global stage.”
Commenting on the deal, Ben Marshall, Head of Vitol Americas, predicted that US natural gas production will continue to play a critical role in satisfying the world’s energy needs as the energy landscape continues to evolve and “this transaction highlights Vitol’s ability to provide innovative gas and LNG solutions”
