6th Nov 2013 11:42
LONDON (Alliance News) - Centrica PLC Wednesday said it has entered into a four and a half year liquefied natural gas agreement with Qatargas for GBP4.4 billion.
The major energy provider and parent company of British Gas said that as part of the deal it will purchase up to 3 million tonnes per year of LNG from Qatargas.
The company said the deal, which bolsters existing agreements between the two parties, could provide gas to meet roughly 13% of UK annual residential gas demand, or around 3 million households.
Centrica said a previous contract signed with Qatargas comes to an end in June 2014 and the transaction secures important gas supplies for Centrica and the UK until December 2018.
The Conservative Energy Minister Michael Fallon said in response to the news that, "long term deals of this kind with reliable suppliers like Qatar are vital for our future energy security."
Centrica shares were down 1.0% to 354.40 pence Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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