Centrica PLC
Centrica signs five year flexible supply contract with Shell
Centrica plc today announced that its subsidiary British Gas Trading Limited
(British Gas) has secured a five year flexible supply contract with Shell Energy
Europe B.V. (Shell) to deliver gas to Centrica commencing 1 October 2004.
Shell has been contracted to deliver an average total of 4.5 billion cubic
metres (bcm) to British Gas over the full five year life of the contract, with
flexibility for total volume to be less than or in excess of this figure. The
agreement provides significant buyer's optionality for pricing and volume
nomination arrangements and will deliver gas to the UK's NBP. The contract could
represent a total consideration of approximately £300 million.
Jake Ulrich, Managing Director of Centrica Energy, said: 'This agreement with
Shell marks an important step in Centrica continuing to source gas for our
customers from a diverse range of structured contracts, utilising our risk
management approach.
'This is an innovative deal which will add to the existing volume under contract
in our portfolio, as well as providing for flexibility which assists us in more
closely matching our seasonal supply requirements. Centrica and Shell also
believe this agreement could act as a valuable platform for further discussions
as we look to source gas for our customers from existing and new areas in the
years ahead.'
Enquiries:
Centrica Media Relations 01753 494085
Centrica Investor Relations 01753 494900
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