Centrica, Qatar sign memorandum on energy investment

5th December 2011, Comments 0 comments

Energy provider Centrica, which owns British Gas, said Monday that it has signed a memorandum of understanding with Qatar to explore further cooperation in oil and gas investments.

Centrica, which inked a major deal earlier this year to secure liquefied natural gas supplies from Qatar, said in a statement that the pair would seek to deepen and extend their relationship.

"The partnership will enable us to jointly develop significant energy investments that will further boost the long-term security of the UKs gas supply," said Centrica Chief Executive Sam Laidlaw in the statement.

"We will also explore joint opportunities to deploy capital and expertise in other markets to deliver growth and value for the group."

Investment targets would include new or existing projects in upstream oil and gas including liquefied natural gas, gas storage and combined-cycle gas turbine generation assets and downstream opportunities.

Back in February, Centrica signed a £2-billion del with Qatargas for the supply of 2.4 million tonnes a year of gas over three years to Britain.

The Qatar memorandum, meanwhile, comes two weeks after Centrica announced a North Sea agreement with Norway's Statoil to help protect Britain's gas security over a 10-year period starting in 2015.

The Statoil deal, which replaces a previous decade-long agreement, is worth £13.0 billion (15.1 billion euros, $20.3 billion) at current gas prices.

Centrica had also unveiled a cash deal to buy North Sea assets run by Statoil for £1.0 billion, boosting the British group's oil and gas output by 25 percent.

© 2011 AFP

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