The deal worth 2 billion pounds ($3.2 billion) will provide enough gas to meet around 10 percent of UK annual residential gas demand, enough to meet the needs of around 2.5 million households.
This deal will create a unique strategic relationship with Qatar, Centrica said in a statement posted on its website
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 for the next three years.
Qatar, which has the world’s third largest gas reserves, is set to become an increasingly important source of gas supply for the UK.
In 2010, Qatar supplied the UK with 15 percent of its total gas demand.
By 2025, LNG is expected to account for around 50 percent of UK total supply.
Centrica chief executive, Sam Laidlaw, accompanying Prime Minister David Cameron with other British CEOs on a trade delegation to Qatar, outlined the important role Qatar will play in supplying liquefied natural gas into the UK.
He said: “The UK is the largest gas consumer in Europe and one of the fastest growing markets for gas imports. LNG provides the UK with a bridge to major global gas reserves. This deal is of particular importance and we hope that this will be the start of a longer term working relationship.
“The relationship between Qatar, the world’s leading LNG exporter, and the UK connects supplier and consumer nations. Securing gas supplies benefits our customers, underpins our business and provides an important component of the UK’s long term energy security.”
Commenting on the deal, Cameron, said: “I welcome today’s announcement by Centrica and Qatargas. This important agreement is good for Britain; good for our energy security, good for jobs, and good for economic growth.”
