Centrica has signed a new long-term deal to import LNG from America, amid fears of a supply shortfall just a few days after the UK gas spot price reached a record high.
The company is set to buy 1.75 million metric tonnes per year from Cheniere Energy Partners over a 20 year period, which is enough to supply around 1.8 million homes.
It is due to start in September 2018 and the price will be indexed to the “Henry Hub” natural gas
Sam Laidlaw, chief executive of Centrica, said: “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.”
Prime minister David Cameron and environment secretary Ed Davey also welcomed the agreement, saying gas supplies from America would help diversify the energy mix.