Centrica plc and Chevron UK Limited have reached agreement to terminate their sale and purchase contract for gas from the North Sea. Under the agreement, the high priced contract with Chevron, which involves nearly half a billion therms, will terminate from 1st October 1998 and Centrica will pay a consideration to Chevron.
This deal further reduces Centrica's gas contract commitments. In aggregate, Centrica has now renegotiated price and volume commitments on about 46.5 billion therms.