By Andy Sambidge
Qatar will deliver up to 2.4m tonnes per annum to one of the largest gas suppliers in the UK
Qatargas said on Saturday it had signed a sales and purchasing agreement (SPA) to supply liquefied natural gas to Centrica, one of the largest suppliers of gas to customers in the UK.
Under the agreement, Qatargas will deliver up to 2.4 million tonnes per annum of LNG from the Qatargas 4 project to the UK Isle of Grain Terminal for the next three years.
Dr Mohammed Bin Saleh Al Sada, chairman of Qatargas, said: "The State of Qatar is keen to support the UK's energy requirements and this agreement is yet another important milestone in our mutual energy relationship."
The UK is the world's third largest consumer of gas and one of the fastest growing markets for gas imports.
In 2010, Qatar supplied the UK with 15 percent of its total gas demand, and by 2025, LNG will supply around 50 percent of UK gas needs, the company said in a statement.
The current deal is likely to supply around three percent of the UK gas needs, and around 10 percent of UK residential gas demand.
Qatargas CEO Khalid Bin Khalifa Al Thani added: "This significant deal heralds the start of a new working relationship between Qatargas and Centrica."
Centrica CEO Sam Laidlaw said the relationship between Qatar, the world's leading LNG exporter, and the UK, was "increasingly important".
Established in 1984, Qatargas pioneered the LNG industry in Qatar and now has a production capacity of 42 million tonnes of LNG per annum from its seven trains.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.