LNG Agreement

Centrica PLC
                  

Centrica increases LNG import capacity to supply British Gas customers

Centrica plc today announced it has secured additional import capacity at
National Grid's Isle of Grain LNG terminal in Kent from winter 2010/11, enabling
it to increase the level of liquefied natural gas (LNG) it can import to supply
British Gas customers . With the UK set to be around 50 per cent reliant on
imported gas by 2010, the investment could see supplies arriving from an
increasingly diverse range of international sources, including the Middle East
and North and West Africa.

Centrica's investment in new LNG import capacity will play a key role in
securing the £310 million third phase expansion of the Isle of Grain terminal,
with nearly 30 per cent of the terminal's eventual capacity earmarked to supply
British Gas customers. The company has acquired the rights to import an
additional annual volume of 2.4 billion cubic metres (bcm) per year over 19
years at Isle of Grain in the third phase, building on its second phase capacity
of 3.4 billion cubic metres per year over 20 years from winter 2008/9.

The investment is in addition to the billions of pounds Centrica has committed
to long term gas contracts, which has helped underpin new gas pipelines to the
UK from Norway and Holland. Centrica's LNG capacity at Isle of Grain will
further diversify its sources of supply into the UK, meeting approximately 16
per cent of British Gas's current annual demand.

Sam Laidlaw, Chief Executive of Centrica, said: 'LNG will play an increasingly
important role in meeting the UK's gas needs and this agreement is further
evidence of Centrica being right at the forefront of major investment, thereby
helping to secure future supplies for our British Gas customers.

'Additional import capacity at Isle of Grain will build on our recent success in
securing gas exploration licences in the UK, Norway, Egypt and Trinidad,
offering us a gateway to import gas from a range of international sources.'

Enquiries:

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Notes to Editors:

The investment in LNG capacity is part of Centrica's strategy to gain access to
future gas supplies from an increasingly diverse range of sources, including by
pipeline and as LNG. It follows Centrica securing exploration licences to search
for new gas supplies, with four licences awarded in the Norwegian sector, two in
the UK, one in Trinidad and one in Egypt. Centrica also holds two operating
licences in Nigeria and is a partner in the Canvey Island LNG project in Essex
which is seeking to redevelop the world's first LNG terminal.