Centrica signs new five-year LNG deal with Qatargas

British Gas owner Centrica has entered into a new five-year supply agreement with Qatargas for the purchase of up to 2m tonnes per annum of liquefied natural gas (LNG).

The contract will start in January 2019 after Centrica’s existing contract with Qatargas expires at the end of December 2018.

Chief executive Iain Conn said: “I am very pleased to extend our long-standing supply relationship with the world’s biggest LNG producer and our partner, Qatargas.

“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 initially entered into a three-year gas supply contract with Qatargas from June 2011. It then entered into a further four-and-a-half-year contract, which commenced upon expiry of the previous contract in June 2014 and runs until December 2018.

At 0910 BST, shares were up 0.5% to 237p.