British Gas goes Dutch on imports

BRITISH Gas has struck its second multi-billion-pound gas purchase agreement within a fortnight in a deal which could result in up to 10% of Britain's gas being imported within three year. Owner Centrica said the deal with Dutch group Nederlandse Gasunie could lead to the construction of another pipeline into Britain.

Falling supply from UK gas fields and forecasts for strong demand growth have already led British Gas to sign a deal with Norwegian giant Statoil in a move that will make Britain a net importer of gas for the first time since the late 1980s. Statoil has said it may build more pipelines into Britain, adding to the Interconnector which joins the country's gas fields to the Continent.

The Gasunie agreement is due to run for 10 years starting in 2005 and is worth more than £5bn compared with the £3bn value placed on the Statoil deal.