Centrica's deal with the US is important - but we won't feel the benefits for aeons

It's a start, but just a start.

Today Centrica struck a £10bn supply deal with the US  - describing it as a "landmark agreement".

"This... represents a significant step forward in our strategy, enabling Centrica to strengthen its position along the gas value chain and helping to ensure the UK's future energy security," said Sam Laidlaw, Centrica's chief executive in a statement.

Just how landmark is it? Well, it's effectively the first time the UK has signed a gas import deal with the US - so it's important for a number of reasons.

US natural gas prices are very much cheaper than those in the UK and Europe - around a quarter to a fifth. Here's the thing though: this deal won't lower UK prices all that much, as although the price of the contract is indexed to the US gas market, there is a significant fixed fee on top, which roughly doubles that price. In addition, the volumes of gas involved aren't big enough to have much of an impact on price anyway.

But the important thing about this deal is that it's the first - and therefore a gateway for all sorts of similar contracts.

"More and more deals will get signed with the US from Europe" says Jonathan Lane, Head of Power Consulting at GlobalData. "This will push the US price up, and the European price down. Natural gas prices will eventually harmonise".

The other benefit of the deal is one of security. At the moment the UK relies on a small number of gas suppliers - and heavily on Qatar. The contract with the US will bring some diversity, increasing potential sources and energy security if a pipeline fails.

This is all set very much in the future though - the first shipments aren't due until 2018, so the current strain on our gas supplies may continue for a while.

More on this here.

 
Photograph: Getty Images
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Sadiq Khan to be elected mayor of London

The MP for Tooting will reclaim City Hall for Labour after eight years.

Sadiq Khan is to be elected mayor of London. Though results are still coming through, it is now mathematically impossible for anyone else to win. The Tooting MP has won City Hall back for Labour after eight years of Conservative rule.

At the time of writing, Khan is beating the Conservative candidate Zac Goldsmith, at 45.5 per cent to 33.9 per cent, in what could be described as a landslide victory. The Green candidate Sian Berry is third with 6 per cent of the vote, followed by the Lib Dems (4.4 per cent) and Ukip (3.5 per cent). Turnout has been higher than expected, at 44.8 per cent – the highest turnout in a London mayoral election since Boris Johnson won in 2008, when it was 45 per cent (in 2012, it was 38 per cent).

The first MP of Islamic faith ever elected in London, Khan was also the first Asian and Muslim to attend cabinet meetings, after being appointed transport minister in Gordon Brown’s government in 2009. He has represented Tooting since 2005. There will be a by-election in the constituency as Khan stands down as MP.

Khan’s thumping victory is a boost for Jeremy Corbyn and the Labour leadership, after a night of disappointing local election results, and coming third in Holyrood. At the time of writing, Labour has kept the same share of seats in the London Assembly.

The result is a disaster for Goldsmith, whose campaign came under constant criticism for its scare tactics regarding Khan as a Muslim of Pakistani heritage. The Conservatives accused Khan of “pandering to extremists”.

Andrew Boff, the Conservative group leader on the Greater London assembly, called the campaign’s attempts to link Khan to Islamic extremism “outrageous” , and the outgoing Tory deputy mayor of London, Roger Evans, said it was a “foolish” campaign, which could “leave a negative legacy” for the Conservatives in London.

The result will come as a relief to pollsters, however, who were predicting at least a 12-point lead for Khan.

Anoosh Chakelian is deputy web editor at the New Statesman.