Centrica signs £4.4bn LNG import deal with Qatar

The owner of British Gas, Centrica, has signed a £4.4 billion agreement to purchase Liquefied Natural Gas (LNG) from Qatar. The four-and-a-half year deal sees Centrica buy up to three […]

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By Priyanka Shrestha

The owner of British Gas, Centrica, has signed a £4.4 billion agreement to purchase Liquefied Natural Gas (LNG) from Qatar.

The four-and-a-half year deal sees Centrica buy up to three million tonnes of LNG a year from Qatargas – building on a £2 billion agreement signed in February 2011 which runs out next year.

The latest gas contract is enough to meet the needs of three million UK households and could provide around 13% of the nation’s gas needs.

Chief Executive Sam Laidlaw said: “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 welcomed the news saying: “Long term deals of this kind with reliable suppliers like Qatar are vital for our future energy security.”

Earlier this week Mr Laidlaw pledged to forgo his bonus this year.