Centrica announced that it has bought Suncor Energy Inc’s Trinidadian gas properties for US$ 380 million. The assets should be capable of producing between 60 - 70 million ft3/d, and may boost Centrica’s reserve base by up to 50%.
Centrica has been acquiring natural gas assets in order to secure a long-term supply source and avoid exposure to fuel price volatility, which has led to a 7% drop in full year earnings for 2009.
Last year, the company bought North Sea explorer Venture Production Plc., and also plans to spend £15 billion by 2020 developing its own energy portfolio.
UK energy suppliers are increasingly looking to buy up foreign reserves as gas from the North Sea starts to dry up; there may be a few years left, but its days are now numbered. Centrica had to import 15 LNG cargos in 2009, which exposed it to gas price volatility and it is this which driving the surge to grab foreign reserves.