Statoil agreed to a 10-year gas supply contract with Scottish and Southern Energy for an annual volume of 17 billion cubic feet of natural gas for the Peterhead gas power plant in Scotland.
The Norwegian energy company has been a major player in the British market for more than 30 years and is the largest supplier of natural gas to the region from the Norwegian continental shelf.
Rune Bjornson, senior vice president for natural gas at Statoil, said in a statement the agreement was "an illustration of our commitment to the U.K. gas market."
The Peterhead power station supplies enough electricity to meet the energy demands of 2 million households. Natural gas deliveries from Statoil are expected by the end of 2012.
"(W)e are keen to convey that natural gas should play a key role in U.K. power generation for the long term, as gas is cost competitive, an abundant resource and leaves a low carbon footprint," added Bjornson.
Celebrity Couples of 2014 [PHOTOS]