Ashurst has advised Centrica Energy, the parent company of British Gas and largest supplier of natural gas to customers in the UK, on its three year LNG sale and purchase agreement (SPA) with Qatargas. The SPA was signed by both parties on 21 April in Doha.
The £2 billion agreement will see 2.4 mtpa of LNG delivered from the Qatargas 4 project to the Isle of Grain LNG terminal in Kent, with the first LNG cargo delivery expected later in 2011.
Qatargas chief executive Khalid bin Khalifa Al Thani said in a statement:
“ This significant deal … underscores Qatargas’ commitment to the UK as one of our key gas markets .”
The deal is widely seen as a very important deal for the UK and will see enough gas delivered each year to meet 10 per cent of the UK’s residential gas demands. Prime Minister David Cameron described the deal as an “ important agreement ” which was “ good for Britain; good for our energy security, good for jobs, and good for economic growth .”
The Ashurst team, supporting Centrica Energy in-house counsel Tony Hawkins, was led by energy partner Anthony Patten, assisted by senior associate Renad Haj Yahya. Renad and Anthony have together advised Centrica on a range of upstream and downstream gas transactions over the past year.
Commenting on the deal, Anthony Patten said:
“ Centrica is a key client for Ashurst and we are delighted to have had the opportunity to work with Centrica on such an interesting and important deal in the UK energy sector. We look forward to continuing to support Centrica as one of their trusted business advisers .”
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Source: Ashurst, May 3, 2011;