American #gas will power 1.8m UK homes after Centrica strikes a 20 year deal

Share

Gas imported from the United States is to heat as many as 1.8 million UK homes after Centrica unveiled a supply deal worth £10 billion.

The British Gas owner said the 20-year contract for commercial deliveries from the Sabine Pass liquefaction plant in Louisiana would play an important role in protecting the UK’s energy security as production from the British North Sea fields falls.

The deal with Cheniere Energy Partners for 1.75 million metric tons of annual liquefied natural gas (LNG) is the first time that the UK has entered into a formal gas import agreement with the United States.

In 2011, Centrica entered into a three-year supply agreement with Qatargas and a new 10-year contract to pipe gas to the UK from Norway from 2015.

The new deal is enough to meet the annual gas demands of around 1.8 million UK homes and the deal can be extended for another 10 years.

Centrica chief executive Sam Laidlaw said: ‘This landmark agreement represents a significant step forward in our strategy, enabling Centrica to strengthen its position along the gas value chain and helping to ensure the UK’s future energy security.’

via American gas will power 1.8m UK homes after Centrica strikes a 20 year deal | Metro News.

Share

Comments

comments