British Gas owner Centrica confirms Â£10bn gas supply deal
Centrica has announced a new gas supply deal worth Â£10bn which it believes will greatly benefit the energy security of the UK in the future.
The British Gas owner has confirmed a 20 year deal with Cheniere Energy Partners - the first time the UK has entered a formal agreement to receive gas supplies from the US.
The news comes at a time when only last week it was reported UK gas supplies were at a three-year low. Emergency supplies from Qatar have been sought in order to boost the supply which has dwindled in the face on an exceptionally cold March.
Unfortunately, the deal will not actually see any shipments delivered to the UK until 2018 at the earliest, although once the gas does arrive, Centrica believes it will provide the firm with enough energy to heat more than 1.6 million homes.
Centrica chief executive, Sam Laidlaw, said: "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."
Prime Minister, David Cameron, 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."
British Gas is just one of the energy suppliers taking part in the Government's Green Deal. Through the scheme customers can look at installing a number of products including, boilers and wall insulation into their home in order to make it more energy-efficient.
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