SEATTLE (Oil Monster): Centrica Energy and Tourmaline Oil Corp. have expanded their long-term natural gas supply agreement, adding 30,000 MMBtu per day from 2031 and increasing Centrica's future access to Canadian gas linked to European market pricing.
Under the expanded agreement, Tourmaline will deliver an additional 30,000 MMBtu of natural gas per day to Centrica Energy from 2031 through 2038.
Centrica said the incremental volumes are equivalent to approximately three LNG cargoes per year and will support its strategy of building a diversified and flexible LNG portfolio.
The expansion builds on an agreement announced in November 2025 under which Tourmaline committed to supply Centrica Energy with 50,000 MMBtu per day beginning in April 2028 for a ten-year term.
That original agreement represents approximately five LNG cargoes annually. Once the additional tranche begins in 2031, the overlapping contracted volume will rise to 80,000 MMBtu per day, equivalent to roughly eight LNG cargoes per year based on Centrica's stated cargo equivalents.
The important number is not only the new 30,000 MMBtu/day tranche. Beginning in 2031, Centrica's contracted supply from Tourmaline rises to a combined 80,000 MMBtu/day during the overlapping term. Based on Centrica's own cargo equivalents, that represents about eight LNG cargoes annually, up from approximately five under the original agreement.
The additional volumes will be indexed to the Title Transfer Facility, or TTF, Europe's major natural gas trading benchmark, consistent with the original agreement.
Centrica said the structure helps manage future market price exposure by linking long-term feed gas supply to a key European gas benchmark.
For Tourmaline, the agreement increases exposure to international gas pricing rather than relying solely on North American benchmarks.
Tourmaline said the additional Centrica volumes will increase its average daily natural gas exposure to international TTF and JKM pricing to approximately 362,500 MMBtu per day by April 2031.
Tourmaline Chairman and CEO Mike Rose said the expansion supports the company's strategy of diversifying its markets and strengthening its role as a Canadian natural gas supplier to international customers.
Centrica Energy Managing Director Cassim Mangerah said expanding the relationship strengthens the company's future supply position while supporting a more diversified LNG portfolio.
The original 50,000 MMBtu/day supply commitment is scheduled to begin in April 2028. The additional 30,000 MMBtu/day tranche begins in 2031, creating the higher 80,000 MMBtu/day combined supply level during the overlapping contract period.
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