Re Agreement

Centrica PLC
                  

            Centrica Acquires LNG Capacity at Isle of Grain

Centrica plc today announced it has successfully acquired second phase
regasification capacity from Grain LNG Limited, a subsidiary of National Grid
Transco, which will enable British Gas to access a potential annual volume of
3.4 billion cubic metres (bcm) of liquefied natural gas (LNG) for its customers.
The agreement gives Centrica the capability to meet approximately 9 per cent of
its current total annual demand via Grain LNG.

Regasification capacity, which runs for 20 years commencing in late 2008, will
allow Centrica to purchase and import LNG cargoes from a range of international
sources, for delivery at the new Isle of Grain terminal in Kent. Following
regasification, supplies will be delivered into the National Transmission
System.

Centrica's investment to take capacity in the new Isle of Grain terminal is part
of its strategy to procure future supplies from a range of international
sources, including LNG sourced through contracts and investments in upstream
equity projects. In August 2004, Centrica signed a landmark deal with Petronas
for gas via a new LNG regasification terminal at Milford Haven, providing 3
billion cubic metres of gas per annum for 15 years to British Gas customers,
commencing between 2007-2008.

Jake Ulrich, Managing Director of Centrica Energy, said: 'This agreement to take
regasification capacity at Isle of Grain is further evidence of our commitment
to secure future supplies for our British Gas customers from a diverse range of
international sources.

'This capacity provides us with a gateway to import gas into the UK and enables
us to source LNG through cargoes on the spot market or contract agreements. Our
requirement for long term supplies will also help to underpin Grain LNG's
investment in additional infrastructure, which Centrica views as a key part of
meeting the UK's future energy needs.'

Enquiries:

Centrica Media Relations       01753 494085
Centrica Investor Relations    01753 494900