Centrica plc has entered into a new five-year supply agreement with Qatargas for the purchase of up to 2 million tonnes per annum of Liquefied Natural Gas (LNG).
The new LNG contract will start in January 2019, following expiry of Centrica’s existing contract with Qatargas at the end of December 2018. With the decline in North Sea production and the recent growth in global LNG supply, the UK is increasingly becoming an attractive destination for LNG.
Centrica Group Chief Executive, Iain Conn, said: “I am very pleased to extend our long-standing supply relationship with the world’s biggest LNG producer and our partner, Qatargas.
“Centrica continues to develop its presence in the global market. The scale of our gas demand and our strong energy marketing and trading capabilities mean we are ideally-placed to work with LNG producers across the world, providing flexibility and a route to market at a time when secure market access is increasingly important.”
Saad Sherida Al-Kaabi, Qatar Petroleum President and Chief Executive Officer, and Chairman of Qatargas Board of Directors, said: “We are delighted to extend our strong relationship with Centrica and the United Kingdom. This agreement underscores Qatargas’ reputation as a safe and reliable supplier of LNG. Furthermore, this agreement has the potential to positively contribute to the United Kingdom’s energy security for years to come.”
Commenting on the newly signed deal, Khalid Bin Khalifa Al-Thani, Chief Executive Officer, Qatargas, said: “Qatargas is pleased to lengthen our existing partnership with Centrica – a partnership which dates back to 2011. This new agreement reinforces Qatargas’ commitment to building a strong relationship with customers, and our position as the leading supplier of LNG to the United Kingdom.”
Centrica initially entered into a three-year gas supply contract with Qatargas from June 2011. It then entered into a further four-and-a-half-year contract, which commenced upon expiry of the previous contract in June 2014 and runs until December 2018.