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Centrica said on Wednesday it plans to extend its gas supply contracts with Norway and Russia, in a move which highlights the UK’s increasing dependence on imports to meet domestic demand.
The UK’s biggest supplier of gas will increase its contracted supply with Norway by 50 per cent, and with Russia by 75 per cent in order to meet half of the UK’s 70 billion cubic metre per year demand.
Centrica already held a 10 year supply contract with Norway’s Statoil for 5 billion cubic metres of gas per year signed in 2011, and a second 3 year contract with Russia’s Gazprom for 2.4 bcm agreed which was signed in 2012.
Under the terms of the new deal Centrica will import 7.3 bcm per year from Norway over the next six years, and a total of 29.1 bcm from Russia until 2021.
The exposure to Russian gas imports in particular has raised concerns that the UK is increasingly dependent on supplies which could face disruption due to technical or geopolitical disruptions.
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