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LFDE to supply gas to French town under deal with EDF's Dalkia

(Reuters) — Coal-bed methane producer La Francaise de l'Energie (LFDE) said on Thursday it had signed a partnership with EDF unit Dalkia to supply gas to the northern French town of Bethune.

Gas from former coal mines in France's industrial north will replace the imported gas currently used in the town, in a first for LFDE.

The 22-yr partnership comes into effect in 2021 and will represent annual revenue of more than 1 MM euros for LFDE, the company said in a statement.

"It's small... but it's a start, and behind that there is the validation of their strategy to focus on local networks," said a Paris-based analyst, adding that the company would seek to sign further contracts with larger towns.

LFDE already injects gas into France's network under an agreement with Total Gas & Power and converts it into electricity which is sold under an agreement with EDF.

Reporting by Alan Charlish; editing by Jason Neely

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