HomeEditors PicksCentrica signs 10-year gas deal with Statoil

Centrica signs 10-year gas deal with Statoil

The parent company of British Gas, Centrica, has today signed a ten-year deal with Statoil for the supply of 50 billion cubic metres of gas to the UK.

The contract will start in 2015 and Centrica said it would supply enough gas to meet 5 per cent of the UK’s total annual demand, enough for 3.5 million homes.

And in a separate deal, Centrica has bought from Statoil a gas and oil field in the Norwegian North Sea for $1.5bn, marking the company’s debut as an operator of producing assets in Norway.

Centrica chief executive Sam Laidlaw said the 10-year supply deal would raise the total value of Centrica’s UK gas supplies to more than GBP50bn.

“Centrica is at the forefront of helping to deliver UK energy security and our strategic relationship with Statoil links us to one of the world’s largest gas exporters and a natural partner to the UK,” he added.

The deal was also hailed by Prime Minister David Cameron, who said: “Gas plays a central role in powering our economy, and will continue to do so for decades to come. Today’s agreement will help to ensure the continued security and competitiveness of gas supplies to Britain, from a trusted and reliable neighbour.”

Statoil president Helge Lund said the deal proved that “natural gas is set to play an important role in the UK’s long term energy mix”.