Centrica Energy Expands Tourmaline Gas Deal
Tourmaline will supply additional natural gas to Centrica Energy from 2031 through 2038 under an expanded long-term agreement.
Updated on Nov. 6, 2026 in Oil and Gas
Centrica Energy and Tourmaline have expanded their long-term natural gas purchase agreement, adding 30,000 million Btu/d of supply starting in 2031 for a seven-year period. The additional volumes are indexed to the Title Transfer Facility (TTF), the European gas hub benchmark.
Why it matters
The expansion supports Centrica Energy's strategy of building a diversified and resilient LNG portfolio. Long-term supply arrangements linked to key global gas benchmarks help manage future market price risk.
The expansion adds 30,000 million Btu/d, about three LNG cargoes per year, to the 50,000 million Btu/d original agreement. Contract pricing details beyond the TTF index linkage were not specified.
The players
Centrica Energy
Centrica Energy is the energy arm of the British multinational Centrica, which buys and trades LNG to supply its portfolio.
Tourmaline Oil
Tourmaline Oil is Canada's largest natural gas producer, with operations concentrated in the Alberta and British Columbia basins.
The details
Tourmaline, Canada's largest natural gas producer, will supply the additional volumes to Centrica Energy under the expanded agreement. The original deal, announced in November 2025, covers 50,000 million Btu/d from 2028 over a 10-year period.
Timeline
November 2025: Original long-term agreement announced by Tourmaline and Centrica.
2028: Supply volumes under the original agreement begin.
2031-2038: Additional volumes under the expanded agreement are delivered.
Market Landscape
Long-term LNG contracts indexed to the TTF have become a standard tool for European buyers seeking supply diversification away from spot-market volatility. The Centrica-Tourmaline expansion extends that pattern into the early 2030s, tying Canadian supply to European price benchmarks.
For households and businesses, long-term supply contracts like this one help stabilize future gas availability and pricing over the coming decade. The direct effect on consumer energy bills is not addressed in the reported terms.
The takeaway
Long-term supply contracts tied to benchmark gas prices can help buyers plan for volatility a decade out. Watch how these indexed deals shape European gas pricing as the 2028 and 2031 volumes come online.
Further reading
For broader context on supply deals like this, explore more in Oil and Gas.
Source note: This article includes information reported by LNG Industry.
