Centrica signs £2bn Qatar gas deal

23rd Feb 2011 12:39

British Gas owner Centrica underlined the importance of the Middle East for British interests today with the announcement that it has signed a £2bn deal with Qatar to secure enough liquefied natural gas (LNG) to meet 10% of household gas demands.Centrica, whose chief executive Sam Laidlaw was in the Gulf state with prime minister David Cameron, said it will pay £2bn for 2.4m tonnes of LNG a year for the next three years.With increasing global competition from emerging economies for LNG, and declining North Sea production, the transaction secures important gas supplies for Centrica and the UK for the next three years, Centrica said.The deal was welcomed by Cameron, who has faced some criticism for this trip to the Arab world at a time of huge turmoil in the region. "This important agreement is good for Britain; good for our energy security, good for jobs, and good for economic growth," he said.Qatar will become an increasingly important source of gas for Britain in years to come, Centrica said. It supplied 15% of Britain's total gas consumption last year and is expected to provide 50% of supply in 2025, the company said."LNG provides the UK with a bridge to major global gas reserves," said Centrica chief executive Sam Laidlaw."This deal is of particular importance and we hope that this will be the start of a longer term working relationship."