Centrica PLC
10 June 2002
10 June 2002
Centrica signs long-term European gas supply agreement
Centrica plc today announced that its subsidiary British Gas Trading Limited
(British Gas) has secured its first long-term European gas supply contract. The
agreement, with Norwegian gas and oil producer Statoil ASA (Statoil), is linked
to UK gas prices.
Under the 10-year agreement, 5 billion cubic metres of natural gas will be
delivered each year to British Gas, equivalent to more than 10 per cent of its
current demand. The gas is due to be delivered to the UK from 1 October 2005.
As a consequence of the contract with Centrica, Statoil confirmed today that it
is evaluating several possibilities for new pipeline links to increase future
delivery capacity to the UK. Currently, a single pipeline delivers gas from the
extensive integrated transport and production system on the Norwegian
Continental Shelf to the UK market.
Roy Gardner, Chief Executive of Centrica, said: 'We are very pleased to have
reached this ground-breaking agreement with Norway's leading producer and
trader, with price linked to the UK gas market rather than to world oil prices.
'This is good news for our customers too, because it secures a long-term and
stable supply of gas through to 2015 and is expected to lead to additional gas
transportation capacity from Norway to the UK.'
Mr. Peter Mellbye, Statoil's Executive Vice President for Natural Gas said:
'This deal secures a good commercial outlet for Statoil's gas and is therefore
key to the future development of new gas fields to increase supplies into
Europe.
'The UK is a target market for Statoil due to the increasing need for gas
supply. Furthermore, this sale underpins the possibility for additional gas
transport pipelines from Norway into the UK.'
Enquiries:
Centrica Media Relations 01753 494085
Centrica Investor Relations 01753 494900
Notes:
1. Centrica plc trades in Britain under the British Gas, AA, Goldfish and
One.Tel brands.
2. Statoil is a major integrated oil and gas company headquartered in
Stavanger, Norway. Statoil is the leading producer and trader of gas from
Norwegian fields and a key supplier of gas to Europe. Statoil is also the
marketer of Norway's state owned oil and gas volumes.
This information is provided by RNS
The company news service from the London Stock Exchange
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