UK energy company, Centrica Energy, part of the Centrica Group, has signed a long-term natural gas purchase agreement with Canadian producer, Peyto Exploration & Development Corp.
Under the agreement, Peyto will deliver 50,000 MMBtu of natural gas per day to Centrica Energy over a 10-year period from 2029, equivalent to around five LNG cargoes annually.
Deliveries will be made at the NIT ‘AECO’ hub operated by TC Energy in Alberta, Canada.
The gas will be priced against TTF, the European gas market benchmark.
By linking feed gas pricing to European benchmarks and maintaining flexibility across global markets, the deal enhances Centrica Energy’s ability to manage market exposure and optimise its LNG portfolio, the company said.
