UK based utility firm Centrica has agreed to increased the volume of its gas purchase from Norwegian oil and gas firm Statoil and Russian state-owned Gazprom’s UK-based subsidiary.
According to the agreement signed between the two firms in 2011, Statoil was expected to deliver five billion cubic metres (bcm) of gas annually to UK.
The new agreement increases the gas purchase by 2.3 bcm per year, raising it to 7.3 bcm.
Starting from October this year, Statoil will to supply gas to the UK company for ten years, thereby delivering 73 bcm during the term of the contract.
Centrica has also increased the volume gas purchase with Gazprom Marketing & Trading (GM&T), in a separate deal.
GM&T is a UK based subsidiary of OAO Gazprom. The previous deal was signed between the two entities in 2012.
According to the modified agreement terms, Centrica will receive additional volumes of gas takes the average volume to 4.16 bcm per annum.
The new deal increases the total delivery volume from GM&T to 29.1 bcm.
Nearly 70 bcm of natural gas is required by the UK every year for heating up its homes and businesses. The country is also partially dependent on natural gas for power generation.
These long-term supply agreements with Statoil and GM&T are expected to meet the gas requirements of nearly 9 million homes in the country every year.
The deals also increase Centrica’s total commitment for securing gas and electricity through a range of suppliers to more Â£50bn.