In the first major UK LNG deal, Centrica, the gas and electricity supplier has signed an estimated $7.3 billion ( £4billion ) contract with Asean LNG ( a subsidiary of Petronas, the Malaysian State-owned energy company ) for the long term purchase of gas from Dragon LNG’s Milford Haven Terminal.

Petronas will deliver some 45 billion cubic metres over 15 years commencing 2007/2008, bringing the liquefied natural gas into a new Terminal in West Wales. The Dragon LNG Terminal is being developed by Petronas, Petroplus (the Dutch terminal operator) and the BG Group.

The gas from the Malaysian company would be more than enough to supply every home in the UK for one year. LNG imports are seen as an important solution to the UK’s long term demand for gas and increasing dependence on foreign fuel.

Alan Jones of LXL acted for Petronas and Herbert Smith acted for Centrica.

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