National oil firm Petronas said it has signed a 15-year gas sales agreement with Britain's leading energy supplier Centrica Plc in a deal that marked a major breakthrough into the British market.

In a statement, Petronas said its subsidiary Asean LNG Trading Co Ltd sealed the pact with Centrica's unit British Gas Trading Ltd to supply up to three billion cubic metres a year of natural gas for 15 years beginning 2007.

"The deal with Centrica marks a major breakthrough for Petronas in its quest to enter the UK natural gas market and at the same time, will enhance its overall position in the global LNG business," it said.

Petronas, which is the world's largest producer of liquefied natural gas (LNG), said it currently has long-term contracts mainly with traditional customers in North Asia, meeting about half of Taiwan's LNG needs, 25 percent of Japan's needs and 20 percent of Korea's requirement.

Apart from Britain, it is also involved in LNG projects in Egypt and Iran.

Regasified

Under the British pact, Petronas said it would ship the LNG to a receiving terminal developed by Dragon LNG at Milford Haven in Wales, where the LNG would be regasified before it is supplied to Centrica, which in turn would supply the gas to British Gas customers.

Petronas has 30 percent equity in Dragon LNG, while BG group and Petroplus hold 50 and 20 percent stakes respectively. The terminal can process up to six billion cubic metres of gas a year and is due to start operations in 2007.

Centrica, formed in 1997 after the demerger of British Gas plc into Centrica and BG plc, is a leading provider of energy and essential services in Britain, Europe and North America.