Qatargas has signed a major new gas supply deal with Centrica worth £2 billion. The deal stipulates supply of Liquefied Natural Gas (LNG) for a three-year period equivalent to annual consumption of 10% UK households.
Terming the deal strategic, the parent company of British Gas said it will help Britain secure its energy needs as competition from emerging markets intensify. The deal was finalised during Prime Minister David Cameron’s tour of the Middle East with business leaders.
Qatar already supplies UK 15% of its gas requirements and has the third largest reserve of gas and condensates.
Sam Laidlaw – the chief executive of Centrica said he hoped the present deal is the beginning of an enduring relationship.
“This important agreement is good for Britain; good for our energy security, good for jobs, and good for economic growth”, said the Prime Minister, underling the importance of the deal.
The Qatari Prime Minister said his country is interested in doing more business with the UK, after meeting Prime Minister David Cameron.
“About any investment in the state or partially-state owned banks, we are very open for any investment in the UK”, said Prime Minister Sheikh Hamad bin Jassim, when asked if the country is willing to buy into partially tax-payer owned banks RBS or Lloyds TSB.
“In fact we discussed some ideas with the prime minister. Our team has been engaged and we will continue to discuss investment in the UK”, he added.
Centrica will receive 2.4 million tonnes of LNG annually at its Isle of Grain UK facility as per the agreement.
UK – which currently imports half of its annual gas, is expected to import 83% of its total requirement by 2025.
Centrica is due to announce its full year results on Thursday.