Shell Gas and British Gas conclude series of LPG agreements

Shell Gas and British Gas are refocusing their Liquefied Petroleum Gas (LPG) businesses following a series of deals announced today, enabling both companies to concentrate on their strengths and provide greater services to their customers.

British Gas is acquiring Shell Gas' UK LPG cylinder business and part of their domestic bulk LPG business. Shell Gas is acquiring British Gas' industrial (large bulk) LPG business and becoming British Gas' nationwide LPG supplier.

Under this agreement, British Gas will pay a net consideration of around £13 million in cash.

Julie Glennon, Director of British Gas LP Gas said: "The deal is complementary to both companies' portfolio of activities and this is an opportunity for both parties to strengthen and grow their businesses. It reaffirms our commitment to growing our domestic LP Gas business even further, following our acquisitions of Supergas and Totalgaz in the last two years."

Koert Vonkeman, Managing Director of Shell Gas said: "We are now concentrating on areas where we believe we can improve our long-term business providing great services to our ongoing customers. We are confident that British Gas will provide excellent service to our cylinder customers."

The agreements announced today include:

  • Shell Gas is buying British Gas' large bulk LPG business comprising a national network of customers
  • Shell Gas will carry out the supply management of British Gas' LPG products nationally
  • British Gas is buying Shell Gas' cylinder business and a proportion of its domestic (mini bulk) business
  • Included in the sale are the purchasing, storage, handling and filling of LPG cylinders, marketing and sales activities, customer tanks in the domestic bulk business and the relevant customer base of both businesses. Under TUPE legislation some 100 employees engaged in the cylinder business and 10 in the mini bulk business will transfer from Shell Gas to British Gas under their current terms and conditions.

Detailed communications with customers will commence immediately to explain how the changes will impact them and to ensure that customer service quality is maintained throughout the transfer.