Landmark deal underpins Centrica's Langeled project

Centrica’s project to build a reception terminal to receive gas from Norway has been underpinned by a landmark announcement by the UK and Norwegian governments.

Energy Minister Mike O’Brien said the announcement effectively 'froze' the text of the new treaty ahead of the formal signature ceremony later this year. It heralded a new era of North Sea co-operation and marked “a real milestone” in the relationship between the two countries.

“Two years of hard work and amicable and constructive negotiation has laid the foundation for decades of mutually beneficial trade and exploitation of North Sea reserves between our two countries,” he said.

"The UK will not only benefit from the new Langeled pipeline project which can supply up to 20 per cent of our future gas needs but Norway can be confident that it has a stable, long-term partner and outlet for its gas.”

It would, he added, enable oil and gas companies in the UK and Norway to develop further lucrative cross-boundary oil and gas deals quickly and easily.

Centrica is building a terminal at Easington on the East Yorkshire coast to receive gas through the pipeline on behalf of a consortium of seven companies. Centrica Storage will operate the new terminal.