Centrica has today announced that it has increased the volume of gas it is buying from Statoil ASA under an existing supply agreement.
In 2011 Centrica signed a 10 year agreement with Statoil for the supply of 5 billion cubic metres (bcm) of gas per annum to be delivered to the UK from October 2015. The new agreement will increase the volume of gas by a further 2.3 bcm per annum, taking the total volume to be delivered to 7.3bcm per annum - 73 bcm over 10 years.
In a separate agreement, Centrica has also extended its gas supply contract with Gazprom Marketing & Trading Limited (GM&T), a UK-registered subsidiary of OAO Gazprom, to increase the volume of gas it is buying under the agreement it signed with GM&T in 2012.
The new agreement, combined with the volumes agreed in 2012, takes the average volume of gas to 4.16 bcm per annum, taking the total volume to be delivered to the UK under the agreement to 29.1 bcm.
Britain needs around 70 bcm of natural gas each year to heat homes and businesses and to generate electricity, and the UK now needs to import more than half of this. The long-term supply agreements with Statoil and GM&T will meet the gas needs of 9 million British homes every year and take the total amount that Centrica has committed in securing gas and electricity, through a range of suppliers, to over £50 billion.
Notes to editors
- In November 2011, Centrica signed a gas supply contract with Statoil ASA to supply 50 bcm over a 10 year period. The contract starts in 2015.
- In September 2012 Centrica signed a 3 year 2.4 bcm supply deal with Gazprom Marketing & Trading, for delivery from October 2014. The extended contract volumes will start in 2015 and run until 2021.
- Gazprom Marketing & Trading Limited is a UK-registered wholly-owned subsidiary of OAO Gazprom (“Gazprom”). The company is headquartered in London and was established in 1999 to manage Gazprom's marketing and trading activities across Europe. The company is responsible for the optimization of Gazprom’s energy commodity assets and downstream expansion through its marketing and trading network.
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