17th May 2007 07:00
Centrica increases LNG import capacity to supply British Gas customers Centrica plc today announced it has secured additional import capacity atNational Grid's Isle of Grain LNG terminal in Kent from winter 2010/11, enablingit to increase the level of liquefied natural gas (LNG) it can import to supplyBritish Gas customers . With the UK set to be around 50 per cent reliant onimported gas by 2010, the investment could see supplies arriving from anincreasingly diverse range of international sources, including the Middle Eastand North and West Africa. Centrica's investment in new LNG import capacity will play a key role insecuring 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 supplyBritish Gas customers. The company has acquired the rights to import anadditional annual volume of 2.4 billion cubic metres (bcm) per year over 19years at Isle of Grain in the third phase, building on its second phase capacityof 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 committedto long term gas contracts, which has helped underpin new gas pipelines to theUK from Norway and Holland. Centrica's LNG capacity at Isle of Grain willfurther diversify its sources of supply into the UK, meeting approximately 16per cent of British Gas's current annual demand. Sam Laidlaw, Chief Executive of Centrica, said: "LNG will play an increasinglyimportant role in meeting the UK's gas needs and this agreement is furtherevidence of Centrica being right at the forefront of major investment, therebyhelping to secure future supplies for our British Gas customers. "Additional import capacity at Isle of Grain will build on our recent success insecuring gas exploration licences in the UK, Norway, Egypt and Trinidad,offering us a gateway to import gas from a range of international sources." Enquiries: \* TCentrica Investor Relations 01753 494900Centrica Media Relations 01753 492551\* T Notes to Editors: The investment in LNG capacity is part of Centrica's strategy to gain access tofuture gas supplies from an increasingly diverse range of sources, including bypipeline and as LNG. It follows Centrica securing exploration licences to searchfor new gas supplies, with four licences awarded in the Norwegian sector, two inthe UK, one in Trinidad and one in Egypt. Centrica also holds two operatinglicences in Nigeria and is a partner in the Canvey Island LNG project in Essexwhich is seeking to redevelop the world's first LNG terminal. Copyright Business Wire 2007Related Shares:
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