LNG (liquefied natural gas) producer Qatargas has extended its contract with Centrica to supply the UK with LNG until 2023.
Under the new agreement, which has been valued at £2 billion, Centrica will buy up to 2 million tonnes of LNG per year from January 2019 after the existing contract expires.
“Centrica continues to develop its presence in the global market. The scale of our gas demand and our strong energy marketing and trading capabilities mean we are ideally-placed to work with LNG producers across the world, providing flexibility and a route to market at a time when secure market access is increasingly important,” Centrica Chief Executive Officer (CEO), Iain Conn, said.
Qatar LNG Boosts UK Gas Supplies by 2023
Qatargas had initially entered into a three-year agreement with Centrica to supply LNG to the UK from June 2011.
This was followed by another contract, with a duration of four and a half years. The latest agreement has a duration of five years, until December 2023.
Qatargas uses its Q-Max vessels to transport LNG to markets around the globe.
The liquefied natural gas (LNG) will be supplied from Qatargas 4, a joint venture (JV) between Qatar Petroleum (70%) and Shell (30%), with a production capacity of 7.8 million tonnes per year.
The LNG will be delivered by the Q-Flex and Q-Max LNG vessels chartered by Qatargas, to the Isle of Grain terminal, in the UK.
Qatar Reinforces Ties with the UK
“We are delighted to extend our strong relationship with Centrica and the UK. This agreement underscores Qatargas’ reputation as a safe and reliable supplier of LNG. Furthermore, this agreement has the potential to positively contribute to the UK’s energy security for years to come,” Qatar Petroleum President, CEO and Chairman of the Qatargas Board of Directors, Saad Sherida al-Kaabi, said.
According to the CEO of Qatargas, Khalid Bin Khalifa al-Thani, Qatargas’ partnership with Centrica dates back to 2011.
“This new agreement reinforces Qatargas’ commitment to building a strong relationship with customers and our position as the leading supplier of LNG to the United Kingdom,” he said.