Centrica signs contract with Qatargas to deliver LNG to UK

Centrica, the parent company of British Gas, has entered into an agreement for a three-year contract with Qatargas to deliver 2.4 million tonnes per annum of liquefied natural gas (LNG) to the UK Isle of Grain facility.

The deal will provide enough gas to meet approximately 10 per cent of UK annual residential gas demand, which is enough to meet the needs of around 2.5 million households.

Centrica states that Qatar, which has the world’s third largest gas reserves, is set to become an increasingly important source of gas supply for the UK, having supplied 15 per cent of the country’s total gas demand in 2010.

According to Centrica, by 2025 LNG is expected to account for around 50 per cent of UK total supply.