Friday 25 February 2011

Centrica signs £2 billion gas deal with Qatar

British Gas's parent company, Centrica plc, has agreed a three year contract with Qatargas to deliver 2.4 million tonnes of liquefied natural gas every year to the UK.

The deal will provide around 10% of the UK's annual residential demand, enough to meet 2.5 million households.

The deal is important for the UK, as it has become more reliant on LNG since North Sea reserves have become more sparse. Last year Qatar supplied the UK with 15% of its total gas demand. By 2025 LNG is expected to account for around half of UK total supply.

Prime Minister, David Cameron, currently in Qatar on a trade mission said the deal was important: "I welcome today's announcement by Centrica and Qatargas. This important agreement is good for Britain; good for our energy security, good for jobs, and good for economic growth."

Sam Laidlaw, Centrica's Chief Executive echoed the Prime Minister's sentiments: "The UK is the largest gas consumer in Europe and one of the fastest growing markets for gas imports. This deal is of particular importance and we hope that this will be the start of a longer term working relationship."