UK utility Centrica said today that it has agreed to buy natural gas from Canadian producer Whitecap Resources, with supplies equal to five LNG cargoes per year for a 10-year period starting in April 2028.
Whitecap will sell 50,000mn Btu/d of gas (43mn ft³/d) to Centrica under a contract indexed to the Dutch TTF price, Europe's gas benchmark.
Centrica has similar arrangements for the same volumes with Canadian producer Tourmaline and US producer Devon Energy. The firm also has a deal on a similar pricing structure with US producer Coterra but for 100,000mn Btu/d of gas, or about 10 cargoes per year. All of Centrica's North American gas supply deals begin in 2028.
Whitecap will deliver gas to Centrica at western Canada's AECO hub, the producer said on its 24 February earnings call.
Centrica holds 1.75mn t/yr of LNG offtake at Cheniere's 33mn t/yr Sabine Pass facility in Louisiana through 2038, as well as 1mn t/yr from the 13.2mn t/yr Delfin LNG export terminal, which is expected to begin commercial operations in 2030. The agreements with North American gas producers help reduce Centrica's exposure to cross-hub basis risk by linking the purchase price of gas with the same index on which it is intended to be sold, while exposing Whitecap to diversified pricing not linked to often cheaper domestic prices in Canada.

