UK's Centrica signs natural gas supply deal with Canada's Peyto

June ​3 (Reuters) - Britain's ⁠Centrica said on Wednesday ​it had signed a 10-year gas ​supply ‌deal with Canada's Peyto Exploration and Development ⁠for 50,000 million British thermal ⁠units of ​natural gas per day starting in 2029. The volumes equate to about five ​liquefied ‌natural gas cargoes per year. Pricing will be linked to the European benchmark Title Transfer Facility, Centrica ​said.

"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 added.

Centrica signed a similar deal ‌with Canadian exploration firm Whitecap Resources in February.

For Peyto, the agreement provided ⁠long-term ⁠exposure to international LNG-linked pricing, ‌supporting its strategy to diversify beyond North American ​benchmarks, ​the companies said. (Reporting by ‌Prerna Bedi in Bengaluru and Nora Buli in Oslo. Editing by Vijay Kishore and Mark Potter)

Centrica