Peyto Exploration & Development (PEY.TO) said Tuesday it signed a long-term natural-gas supply agreement with Centrica Energy to deliver 50,000 MMBtu of natural gas per day over a 10-year period beginning in 2029.
The company said deliveries will be made at TC Energy's NIT AECO hub in Alberta. The gas will be priced against the Title Transfer Facility (TTF), the benchmark for European natural-gas markets.
Peyto said the agreement supports its strategy of diversifying natural-gas sales to premium demand markets and provides the company with long-term exposure.
Shares of Peyto closed up $0.35 at $25.59 on the Toronto Stock Exchange.