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Centrica sign LNG supply deal with Qatargas

LNG Industry,

Centrica plc, the parent company of British Gas, today announced it has entered into a four and a half year LNG supply agreement with Qatargas for the purchase of up to 3 million tpa of liquefied natural gas (LNG).

The £4.4 billion deal builds on Centrica’s existing agreement with Qatargas, signed in February 2011, and could provide gas to meet approximately 13% of UK annual residential gas demand, enough to meet the needs of around three million households.

The previous contract Centrica signed with Qatargas comes to an end in June 2014. With increasing global competition for LNG from emerging economies, and declining North Sea production, this agreement will secure important gas supplies for Centrica and the UK until December 2018.

Centrica Chief Executive, Sam Laidlaw said: “We are delighted that we continue to deepen our relationship with Qatargas and continue to build our LNG business by integrating our positions along the gas value chain.

Diversity is vital

“It is vital that the UK has a diverse range of sources of supply to meet its energy requirements. In a competitive international market, contracts like this underpin the UK's access to global LNG supplies for the benefit of customers."

Energy Minister, Michael Fallon, who was in Qatar this week, welcomed the news, saying: "Long term deals of this kind with reliable suppliers like Qatar are vital for our future energy security."

Adapted from press release by Ted Monroe

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