CNA: Centrica plc: Centrica signs a £4.4bn gas deal with Qatar to secure
further LNG supplies for the UK
UK Regulatory Announcement
November 6, 2013
Centrica signs a £4.4bn gas deal with Qatar to secure further LNG supplies for
Centrica plc, the parent company of British Gas, today announced it has
entered into a 4 ½ year LNG supply agreement with Qatargas for the purchase of
up to 3 million tonnes per annum of liquefied natural gas (LNG).
The £4.4billion deal builds on Centrica’s existing agreement with Qatargas,
signed in February 2011, and could provide gas to meet approximately 13% per
cent of UK annual residential gas demand, enough to meet the needs of around 3
The previous contract Centrica signed with Qatargas comes to an end in June
2014. With increasing global competition from emerging economies for LNG, and
declining North Sea production, this transaction secures important gas
supplies for Centrica and the UK to December 2018.
Centrica Chief Executive, Sam Laidlaw said:" We are delighted that we continue
to deepen our relationship with Qatargas and continue to build our LNG
business by integrating our positions along the gas value chain. 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, who was this week in Qatar, welcomed the news
"Long term deals of this kind with reliable suppliers like Qatar are vital for
our future energy security."
Centrica Investor Relations
+44 (0)1753 494900
Centrica Energy Media Relations
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Note for editors
*The contract will begin upon expiry of the existing contract in June 2014.
Delivery would be to Centrica’s capacity at the UK Isle of Grain facility.
*The estimated £4.4billion value of the contract is based on the delivery
of 3 million tonnes per annum of LNG for 4.5 years based on current NBP
*In September Centrica and Qatar Petroleum International (QPI) completed a
C$1 billion agreement with Suncor Energy to acquire a package of producing
oil and natural gas assets in the Western Canadian Sedimentary Basin.
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