Centrica in £2billion Qatar gas deal

mattBusiness Gas, International, Wholesale Utilities Markets

Parent company of British Gas has landed a £2billion liquefied natural gas deal with Qatargas.

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Centrica have signed a new 3 year deal with Qatargas for the supply of 2.4 million tonnes per annum of liquefied natural gas (LNG), equivalent to 10% of annual UK domestic demand.

Centrica have displayed some strategic ability as the deal has been struck at a time where natural gas produced from North Sea drilling is starting to dwindle.

There is also fast increasing competition from emerging economies for LNG, and oil prices rising due to the political turmoil throughout the Middle East.

Qatar is the world leader in exportation of LNG, and with the third largest gas reserves in the world already supplies the UK with 15% of its gas.

The deal was signed as Prime Minister David Cameron toured the Middle East with a group of business leaders.

The Prime Minister has hailed the deal stating it is “Good for Britain, good for our energy security, good for jobs, and good for economic growth.”