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."