Total Gas and Power (Total GP) has won an £80 million a year contract to provide Scotland's public sector with gas.

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From April 2010, the new contract will save £5 million a year due to flexible bulk buying on the wholesale market, according to the Scottish government.

Finance secretary John Swinney said he hoped that the new contract would also provide access to energy management measures which would cut demand, lead to better energy efficiency and reduce emissions.

Established in 1987, Total GP now supply over 50,000 sites across all market sectors.

Director John Shead said the company had been developing products and services for the public sector for a number of years.

"We are committed to supporting our new Scottish public sector customers with innovative products and services designed to help them optimise their procurement of gas and move towards greater energy efficiency across their estate."

Suppliers were invited to tender for large and small scale sites across the public sector as part of a competitive tendering process under EU procurement rules.