Re Contract

Re Contract 

    LONDON--(BUSINESS WIRE)--Aug. 15, 2003--

     Centrica secures contract to develop gas reception facility

Centrica plc today announced it has been awarded a contract from the
partners of the Ormen Lange field, offshore Norway, to develop and
operate a new gas pipeline reception facility adjacent to its
Easington terminal, which will receive gas imported primarily from the
Norwegian sector.

Centrica will make no initial capital investment but will utilise the
expertise from the existing Easington gas operations, which support
its Rough storage facilities. Acting on behalf of the Ormen Lange
partners, Centrica will receive a fee for the provision of support and
management services for the design, construction and commissioning of
the new import terminal and subsequent operations and maintenance. The
new pipeline and terminal will improve the UK's security of supply
position, having the capability of importing approximately 70 million
standard cubic metres of gas per day (approximately 12 per cent of UK
peak demand) into the National Transmission System.

Under the contract, Centrica will physically operate the new terminal
when it is completed in late 2006, with a view to continuing to do so
over the longer term, dependent on Ormen Lange partner approval.

First gas is expected from the Norwegian sector in late 2006, with
first gas from the Ormen Lange development scheduled for late 2007.
The new terminal is expected to be operational for 50 years, enhancing
Easington's potential as a trading hub for gas imported to the UK from
Norway and further afield. The proposed project is conditional upon
the receipt of various regulatory and planning consents including an
agreement between the UK and Norwegian governments in respect of the
construction and operation of the pipeline.

Under a separate long term supply agreement signed in 2002, Statoil is
expected to use the new pipeline to deliver gas to Centrica.

Jake Ulrich, Managing Director, Centrica Energy Management Group,
said: 'This contract enables us to take advantage of the strengths of
the Easington team to bring in additional revenue without the need for
capital outlay.

'We are particularly pleased to be playing a key role in supporting
new infrastructure which will offer improved security of supply for
the UK and Centrica customers.'

Notes:

1/  Partners in the Ormen Lange field are:

Norsk Hydro (development stage operator)             17.956%
Anglo Dutch Shell (operator in operations phase)       17.2%
Petoro                                                   36%
Statoil                                              10.774%
Exxon/Mobil                                           7.182%
BP                                                   10.888%

2/ The Easington terminal is operated by Centrica Storage Limited, a
wholly owned subsidiary of Centrica plc. It is located in East
Yorkshire.

Enquiries:

Centrica Media Relations                             01753 494085
Centrica Investor Relations                          01753 494900

   Short Name: Centrica PLC
   Category Code: CNT
   Sequence Number: 00008483
   Time of Receipt (offset from UTC): 20030815T110018+0100