(Bloomberg) -- Centrica Plc agreed with Coterra Energy to purchase and sell natural gas, in the UK company’s latest move to secure supplies amid stiff competition from Asia.
The utility will buy 100,000 million British thermal units a day of natural gas linked to European prices in a 10-year deal starting in 2028, it said Wednesday.
The long-term agreement is effectively a bet by Centrica that gas will remain an important part of Britain’s energy mix for years to come. Companies across Europe are vying with those in Asia to seal agreements to import LNG, after Russia’s 2022 invasion of Ukraine brought energy-security concerns to the fore.
“In an uncertain world Centrica is investing to provide energy security and certainty for its customers,” Centrica’s Chief Executive Officer Chris O’Shea said in a statement. “Gas remains an essential transition fuel and, through agreements like this, we’re providing peace of mind for households, ensuring security of supply in key markets across the globe, and supporting the transition to net zero.”
Centrica has stepped up efforts to expand its LNG portfolio following the energy crisis. It struck recent supply deals with Spain’s Repsol SA and Houston-based Delfin Midstream Inc.
European gas prices have eased from the highs of two years ago, but remain volatile. Abrupt market moves in the past have prompted Centrica to reassess contracts.
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