Centrica and Thyssengas sign Interconnector contract

Centrica and Thyssengas GmbH of Germany today announced they have reached agreement on a contract for gas deliveries through the UK-Continent Interconnector pipeline.

Under the agreement Centrica, through its subsidiary British Gas Trading, will sell to Thyssengas up to 3 billion cubic metres of gas over a period of seven years. Deliveries should start in October 1998, when the Interconnector is due to open, and will be drawn from Centrica's UK continental shelf reserves and gas purchase contracts.

The agreement includes provisions aimed at improving the flexibility of the supply arrangements for both companies so they can capitalise on the opportunities offered by the new and developing gas markets on both sides of the Interconnector.

The agreement is an important step for the Centrica group in meeting the challenges of the developing European gas market. For Thyssengas, the contract provides an innovative link to the international market in Zeebrugge.

Roy Gardner, Chief Executive, Centrica, said;

"This agreement marks the first step in expanding Centrica's customer base outside Great Britain. I look foward to building the relationship with Thyssengas in the future."

"The contract with Centrica is a further important step for Thyssengas to diversify its import contract portfolio and strengthen its competitive position in the European gas market," said Christian Heinrich, member of the Thyssengas Board of Management.