Statoil, Centrica extend gas supply deal

Statoil said it has made an agreement with Centrica to increase the volume of gas it supplies to Centrica under an existing supply agreement.

In 2011, Statoil signed a 10-year agreement with Centrica for the supply of 5 billion cubic metres of gas per annum to be delivered to the UK from October 2015, the company said in a statement.

The new agreement will increase the volume of gas by a further 2.3 bcm per annum, taking the total volume to be delivered over the 10 years period to 73 bcm. The agreement has been made at market terms and conditions.

Britain needs around 70 bcm of natural gas each year to heat homes and businesses and to generate electricity and the half of this demand is covered by imports.

Through its long-term supply agreement with Statoil, Centrica will deliver sufficient gas to meet the needs of nearly 6 million British homes.

Image: Statoil