The Financial Post reports in its Friday edition that more Canadian natural gas is set to make its way to European shores as Tourmaline Oil announces a 10-year supply deal with Centrica Energy, the trading arm of British Gas owner Centrica PLC. The Post's Meghan Potkins writes that the contract will see Tourmaline deliver 50,000 million British thermal units per day -- the equivalent of five liquefied natural gas cargos a year -- to Centrica beginning in April, 2028. The deal is priced off Europe's main gas benchmark, giving Tourmaline exposure to global LNG prices. It is the second direct supply deal the Canadian gas producer has struck with a European buyer. Tourmaline is also set to supply German utility Uniper through deliveries of natural gas to the U.S. Gulf Coast, where it will be liquefied and shipped as LNG to Europe. The contract was one of three new LNG supply agreements Tourmaline announced Wednesday, alongside a decidedly gloomy set of third-quarter results. The company reported a profit of $190-million in the third quarter, down 46 per cent from $355-million a year ago, reflecting depressed natural gas prices. Tourmaline shut in an average of 5,000 barrels of oil equivalent per day over the quarter.
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