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Mon 5 Dec 2011 07:39 PM

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Qatar inks Centrica deal for joint energy projects

Investment arm of Qatar Petroleum signs agreement with parent firm of British Gas

Qatar inks Centrica deal for joint energy projects
Qatar Petroleum has signed an agreement with the UKs Centrica. (Getty Images)

The investment arm of Qatar Petroleum said on Monday it has signed an agreement to explore new joint projects in the energy sector with the UK's Centrica.

The memorandum of understanding will see Qatar Petroleum International and Centrica, the parent company of British Gas, cooperate in energy-related investments around the world.

Investment targets will include new or existing projects in upstream oil and gas including liquefied natural gas (LNG), gas storage as well as combined-cycle gas turbine (CCGT) generation assets and downstream opportunities, the companies said in a statement.

The non-exclusive strategic alliance will deepen the relationship between Centrica and Qatar established earlier this year with the signing of a three-year contract for the supply of 2.4 million tonnes of LNG per year.

The contract, valued at £2bn, provides enough gas to meet approximately 10 percent of the UK's annual residential gas demand during the delivery period.

So far, eight cargoes of LNG have been delivered under the contract, which was welcomed by the British Prime Minister as a boost to UK energy security.

Mohammed bin Saleh Al-Sada, Qatar's Minister of Energy and Industry and chairman of Qatar Petroleum said: "I am pleased to note that QPI and Centrica have agreed to explore various project opportunities together worldwide.

"I am confident that both QPI and Centrica can focus on value-added activities and translate challenges into practical solutions and opportunities in today's world."

Sam Laidlaw, CEO of Centrica, added: "Centrica is playing a leading role in securing Britain's future energy security. Our strategic relationship with Qatar is central to this goal, linking the world's leading LNG exporter with one of the world's most important gas markets.

"The partnership will enable us to jointly develop significant energy investments that will further boost the long-term security of the UK's gas supply. We will also explore joint opportunities to deploy capital and expertise in other markets to deliver growth and value for the group."

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