Five questions answered on Centrica’s £10bn gas deal
Deal to safeguard UK energy.
British Gas owner, Centrica, has today announced that it has stuck a deal with America to secure future gas for the UK. We answer five questions on the deal.
What are the details of the deal?
The company have struck a ten year deal with American Cheniere Energy Partners for £10bn to supply 91,250,000 mmbtu (89 billion cubic feet) of annual liquefied natural gas (LNG), ensuring UK gas supply in the near future.
How many homes do Centrica expect to supply via this gas deal?
As many as 1.8 million homes.
What else has Centrica said about the deal?
Sam Laidlaw, Chief Executive of Centrica, said in a press statement: “In an increasingly global gas market, this landmark agreement 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.”
In the same statement the Prime Minister David Cameron also said: “I warmly welcome this commercial agreement between Centrica and Cheniere. Future gas supplies from the US will help diversify our energy mix and provide British consumers with a new long-term, secure and affordable source of fuel."
Will the deal help the recent gas shortage caused by the ongoing cold weather?
No, as the Louisiana-based plant will not begin its first shipments to the UK until 2018.
UK demand is currently running 32 per cent above normal seasonal demand.
However, a shipment from Qatar is to dock in Milford Haven today, to ease pressure on supply.
What has the government said about this recent strain on the UK gas supply?
Energy minister John Hayes yesterday said there was no gas shortage crisis, speaking to the Telegraph he said: “We get our supplies from a diverse range of sources and the market is proving to be highly responsive to the UK’s needs,”