LNG to take 50% of UK gas market
The UK's stores of liquefied natural gas (LNG) will top 50% of total stocks in the next 14 years following a £2 billion deal.
In the agreement, signed today February 23) Qatar gas giant Qatargas supplying British Gas parent firm Centrica with 2.4 million tonnes of LNG a year.
The gas will be stored on the Isle of Grain in north Kent and will meet around 10% of the UK annual residential gas demand - enough to supply 2.5 million homes.
Last year Qatar, the third largest exporter of LNG, supplied the UK with 15% of its total gas demand.
Following this agreement by 2025 LNG is expected to account for around 50% of the UK's total supply.
British prime minister, David Cameron, said: "I welcome today's announcement by Centrica and Qatargas.
"This important agreement is good for Britain; good for our energy security, good for jobs, and good for economic growth."
Centrica chief executive, Sam Laidlaw, said: "This deal is of particular importance and we hope this will be the start of a longer term working relationship.
"The relationship between Qatar, the world's leading LNG exporter, and the UK connects supplier and consumer nations.
"Securing gas supplies benefits our customers, underpins our business and provides an important component of the UK's long term energy security."