Spanish utility Iberdrola has entered into an agreement supply 0.5 billion cubic meters of liquefied natural gas (LNG) per year to BP in Spain.

The company will start suppling gas from 2012 for the next ten years and will deliver the gas in six LNG cargoes per year to Spanish regasification terminals.

Iberdrola said it will supply gas to BP from its long-term volume portfolio, having signed contracts to buy LNG from companies including Statoil, ENI, Sonatrach and Nigeria LNG.

BP intends to use the volumes received from Iberdrola to replace current imports to Spain and divert the gas to other countries.