The FINANCIAL -- Statoil 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 (bcm) of gas per annum to be delivered to the UK from October 2015.
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 the10-year period to 73 bcm. The agreement has been made at market terms and conditions, according to Statoil.
“We are very happy to have made this agreement with Centrica. The agreement confirms Statoil’s position as a reliable and competitive supplier of gas to the UK, which is a very important market to Statoil,” says Ann-Elisabeth Serck-Hanssen, acting senior vice president of marketing and trading in Statoil.
Britain needs around 70 bcm of natural gas each year to heat homes and businesses and to generate electricity, and the UK now needs to import more than half of this.
Through its long-term supply agreement with Statoil, Centrica will deliver sufficient gas to meet the needs of nearly 6 million British homes.