Renegotiation of Gas Supply Contract with Shell UK

Centrica PLC
26 January 2000


Centrica and Shell UK renegotiate gas supply contract

Centrica and Shell U.K. Limited have announced today the
successful renegotiation of a take or pay contract for
gas from the Galleon field in the southern North Sea.

Under the agreement, prices will be reduced to market
levels on around 1500 million therms of gas in return for
the payment of a consideration to Shell of approximately
one per cent of Centrica's gross assets.

In aggregate Centrica has now reduced price and volume
commitments on around 52.5 billion therms since December
1996.

Jake Ulrich, Managing Director of Centrica's energy
management group, said: 'I am pleased we have been able
to achieve an agreement with one of our largest suppliers
which has brought benefits to both sides.

'Where opportunities arise with suppliers we continue to
seek value adding deals like this one with Shell.'

Tom Botts, Natural Gas Director of Shell U.K. Limited,
said: 'We are pleased to have reached agreement with
Centrica that secures added value to our mutual
benefit.'


Centrica plc

Media enquiries          James Donnan   01753-758443

Investor Relations       Chris Milburn  01753-758114


Shell UK Limited

Media Relations          0207 934 3505/4323