British Gas owners Centrica have penned a ten-year deal with Norwegian oil and gas giants Statoil that will supply 50 billion cubic metres of gas worth £13 billion. Starting in 2015 the imported gas deal will supply around 5% of total UK demand.
Sam Laidlaw, CEO of Centrica, said: “Following the signing of this 10 year deal, the total value of future gas supplies secured by Centrica for the UK now stands at more than £50 billion. As well as being the second largest gas producer in the UK, we also have one of the fastest growing exploration and production businesses on the Norwegian continental shelf.”
As the UK imports around 50% of its gas needs, the Prime Minister said agreements like this were good for UK business: “Gas plays a central role in powering our economy, and will continue to do so for decades to come. Today’s agreement will help to ensure the continued security and competitiveness of gas supplies to Britain, from a trusted and reliable neighbour.”
A previous 10-year contract between Centrica and Statoil was signed in June 2002 and started in 2005, delivering five bcm of gas each year.