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Centrica extends contract with Qatar for LNG

The Bains field was tied back to the South Morecambe platform
The Bains field was tied back to the South Morecambe platform

Centrica has extended a contract to buy gas from Qatar until 2023.

The multi-billion pound deal will see the company purchase as much as two million tonnes of liquefied natural gas (LNG) every year from 2019.

A spokesman for the firm said the decline in North Sea production as well as a recent growth in the global LNG supply meant the UK has become an “increasingly attractive” destination for LNG.

In 2011, the energy giant signed a three-year deal to buy LNG from Qatar.

A current deal between the pair saw that initial deal extended until the end of 2018.

Iain Conn, Centrica chief executive, said: “The scale of our gas demand and our strong energy marketing and trading capabilities mean we are ideally placed to work with LNG producers across the world, providing flexibility and a route to market at a time when secure market access is increasingly important.”

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