Centrica share price: Company extends LNG import accord with Qatar

on Nov 8, 2013
Updated: Oct 21, 2019

iNVEZZ.com, Friday, November 8: British Gas owner Centrica PLC (LON:CAN) has signed a £4.4 billion gas supply deal with Qatar, extending an existing accord until the end of 2018, as the UK aims to offset declining production from North Sea fields.

Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
Centrica is to buy as much as 3 million metric tonnes of liquefied natural gas (LNG) a year from Qatargas, worth £4.4 billion at current UK prices – enough to meet the needs of 3 million homes, or the equivalent of 13 percent of UK annual residential demand. The deal is an extension of Centrica’s 2.4 million tonnes-a-year supply agreement with Qatargas, which was signed in February 2011 and will expire in June 2014. While the deal will help Britain secure its energy needs as domestic North Sea supplies decline, it will also increase the country’s dependence on gas imports.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

“It is vital that the UK has a diverse range of sources of supply to meet its energy requirements,” Centrica’s Chief Executive Sam Laidlaw said in a statement on Wednesday. “In a competitive international market, contracts like this underpin the UK’s access to global LNG supplies for the benefit of customers.”
Britain dependence on gas imports peaked in the first quarter this year. The country receives gas via pipelines from Norway, its biggest supplier, from the Netherlands and from Russia through Belgium. Earlier this year, Centrica agreed a 20-year contract to import LNG from the US starting in September 2018 (Centrica Strikes 20-Year Deal for US LNG Imports as UK Output Declines), taking advantage of the new abundance of cheap North American shale gas. Last year, Centrica signed a three-year deal with Russia’s Gazprom to buy gas from October 2014.

Ninety-three percent of Britain’s LNG imports have come from Qatar so far this year. Shipments of Qatari LNG, however, have been 38 percent lower compared with the same period last year. Britain has so far failed to receive a supply guarantee from Qatargas, which has allowed the world’s biggest producer of shipped gas to divert cargoes away from the UK to the highest-priced market.

“The signing of this agreement represents our further commitment to have Centrica as a partner for the UK market,” Qatargas’ Chief Executive Officer Khalid Bin Khalifa Al Thani said in a statement.

**Poland’s Lotos to Buy Centrica’s North Sea Oil Assets**
In an unrelated development, Grupa Lotos, Poland’s second-biggest refiner, has agreed to buy Centrica’s oil and gas exploration assets in the Norwegian section of the North Sea for $175.8 million (£109 million), Bloomberg has reported.

Gdansk-based Lotos will buy 14 stakes ranging from 5 percent to 50 percent in licences linked to the Heimdal hub as part of its foreign expansion, the Polish state-controlled refiner said in a regulatory filing on Tuesday. By acquiring Centrica’s stakes in Heimdal, Lotos gains access to an additional 9 million barrels of oil equivalent of proven and probable reserves.
**As of 16:35 UTC on Thursday buy Centrica shares at 368p.**
**As of 16:35 UTC on Thursday sell Centrica shares at 348p.**
Trade these shares now through Hargreaves Lansdown from £5.95 per deal.
Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.


Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

Learn more
Commodity Energy Energy & Power Stock Market