Centrica and Qatar sign new deal
December 14, 2011 at 4:15 pm
Centrica, which owns British Gas, recently agreed to a new deal with Qatar Petroleum, the oil company owned by the state in Qatar.
The memorandum of understanding between the two companies will lead to Qatar providing Centrica with a steady supply of gas, and the two companies have also agreed to invest jointly in a number of projects.
These projects will comprise of a number of new projects along with some existing ones, and will include investments in liquefied natural gas (LNG), turbines powered by gas, and gas storage amongst other things.
It is not yet clear how much the two companies are planning to spend on these projects or when the first joint deal will be fully completed. However, the move signifies a strengthening of ties between the two companies which is a good thing in these volatile times for the energy industry.
The deal is being billed as good news for the gas supply of Britain, and the CEO of Centrica, Sam Laidlaw, said that the investments will improve the security of the gas supply for the UK.
The deal was announced at the start of the World Petroleum Congress in Doha where the major energy companies were meeting to discuss the turbulent times the industry is having to face at the moment, with issues surrounding the Arab Spring high up on the agenda.
The deal follows on from a previous deal made between the companies back in April 2011 where Qatar agreed to provide Centrica with 2.4 million tonnes of LNG over a period of three years.
