
Centrica have entered into a 20-year deal with U.S. shale gas suppliers as it looks to take advantage of the U.K. demand for gas.
The U.K. is placing increasing demand on alternative sources for gas, with pipelines failing to meet requirements at peak demand. With the U.K suffering from a protracted period of cold weather, fears have mounted surrounding the sustainability of energy supplies and the threat of blackouts.
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The growth of U.S. shale gas production has created an attractive and competitive opportunity for the U.K. market, for the owners of British Gas.
Sam Laidlaw, Centrica’s chief executive, said of the deal: “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.”
The deal with Cheniere Energy is expected to provide the first exports by 2018.
The growth of the shale gas market has seen U.S. firms provide gas to multiple countries, with companies from Korea, Spain, Indian and France all recently agreeing on shale gas contracts.