LNG

Centrica Plc, the UK owner of the British Gas utility business and an LNG importer, has released stored gas into the grid from the Rough Gas Storage system for the first time this winter season.

Centrica plc, the UK owner of the British Gas utility business and an liquefied natural gas importer, said in a trading update that it continued to deliver a “strong operational performance” from its balanced portfolio.

Equinor, the Norwegian major and the UK’s Centrica, owner of the British Gas utility, have signed a deal for the delivery of more Norwegian pipeline natural gas over the next three winters and the accord will slightly lessen the need for more LNG deliveries to UK terminals.

Centrica plc, the UK owner of the British Gas utility business, has completed the sale of its Norwegian offshore exploration and production assets to Sval Energi of Norway and the interests in the Statfjord oil and gas field to Equinor for an initial $1.1 billion as the UK company pulls out of new offshore activities.

As part of the transaction all future decommissioning liabilities associated with the assets, about £800 million ($1Bln), will also transfer to the buyers.

“The final headline consideration may rise to $1.2 billion dependent on commodity prices,” said Centrica.

“Centrica's Spirit Energy subsidiary will now focus on maximising delivery of its gas production for the UK, repurposing assets for the energy transition and decommissioning activities,” added Centrica.

“Spirit will effectively be in run-off, and we will not explore for new hydrocarbon reserves,” stated the UK utility.

“We will focus on ensuring Spirit can fund its decommissioning liabilities while pursuing opportunities to leverage existing infrastructure to help the UK on its path to net zero,” it concluded.

Storage and trading

Centrica launched Spirit Energy in 2017 as a joint venture with German energy and infrastructure firm Stadtwerke München (SWM).

British Gas supplies energy to 9 million homes across the country and is an in-home servicing provider with a field force of around 7,500 engineers.

Centrica also still retains its Centrica Storage Ltd (CSL) assets to produce and process gas from the Rough gas field in the southern North Sea.

Gas is extracted offshore and sent via a pipeline to the Easington gas terminal in Yorkshire on the East Coast where it undergoes processing and is sent into the National Transmission System.

The company also has its Centrica Energy Marketing & Trading arm involved in LNG and power and gas markets.

It has main offices in London as well as in Aalborg in Denmark. It additionally has branches in Norway and Sweden and subsidiaries in Germany and Singapore.

In a recent trading update ahead of its 2022 interim results due on July 28, Centrica said it would deliver strong operational performance and currently expects full year adjusted earnings per share to be around the top of the range of expectations.

“In British Gas Services & Solutions we have seen some supply chain disruption and higher inflation impacting both the cost base and customer demand,” said the company.

“We expect those headwinds to continue to, at least partially, offset underlying operational progress for the duration of this period of higher inflation,” it added.

“However, volumes from our nuclear and gas production assets in the UK have been strong and our Energy Marketing & Trading business has secured increased volumes of gas and renewable energy to improve the UK and Europe’s security of supply,” it concluded.

Centrica plc, the UK utility and energy company with a growing LNG market presence, reported a resilient financial performance in the second half of 2020 as the trading and optimisation performance continued to be strong, especially in LNG.

Sept 4 (LNGJ) - UK LNG and natural gas player, Centrica plc, has agreed to acquire the energy supply customers of another company through its British Gas business. Centrica said the purchase for an undisclosed sum of Robin Hood Energy will add around 112,000 residential utility customers and 2,600 business customers across 10,000 sites. “Completion of the transaction is expected on 16 September with customers moving to British Gas over the next few months,” said Centrica.

   “As well as our actions to simplify and modernise our business, we are focused on returning to profitable growth in our core markets and investing in value generating opportunities,” said Chris O’Shea, the Chief Executive of Centrica. The UK utility receives LNG cargoes from producers such as Cheniere Energy’s US Sabine Pass plant and has booked volumes from Mozambique LNG.

Centrica plc, the UK utility and energy company with a growing LNG market presence including booked volumes from the US and Mozambique, has confirmed Chris O’Shea in his post of Chief Executive.

O’Shea, the former Chief Financial Officer, had initially been named as interim CEO on March 17 while a search got underway for a permanent successor to Iain Conn, who had stepped down as scheduled as CEO and from the Board.

A new Chairman, Scott Wheway, had also been named in March when incumbent Chairman Charles Berry, who has been on medical leave since the 12th of February 2020, tendered his resignation for health reasons.

Centrica, owner of the utility company British Gas, has established strong LNG capabilities over the past few years, including having a cooperation agreement with Japanese utility Tokyo Gas.

Centrica and Tokyo Gas have co-purchased offtake of delivered ex-ship (DES) supplies amounting to 2.6 million tonnes per annum for 20 years from the proposed Total-led Mozambique LNG export plant in southeast Africa.

Centrica additionally has a 20-year contract for volumes from Train 5 at Sabine Pass on a free-on-board (FOB) basis, giving it destination rights for the cargoes and a purchase price indexed to the US benchmark Henry Hub price.

The UK company holds regasification capacity at Europe’s largest import terminal, the Isle of Grain facility on the River Medway-Thames estuary in Kent.

In addition, LNG fleet owner GasLog recently received a newbuild carrier that will be chartered to Centrica for its growing LNG activities.

The 180,000 cubic metres capacity vessel, named “GasLog Windsor”, was constructed at Samsung Heavy Industries on South Korea.

“In the last few weeks since my appointment I have completed a review of both the internal and external candidates for this role and have come to the conclusion that Chris is comprehensively the best candidate for Centrica," said Chairman Wheyway in making the announcement.

"I’m delighted to appoint him to the role on a permanent basis,” he added.

“The Board is confident that he is the right leader to navigate Centrica through and beyond the present Covid-19 crisis focusing on the welfare of our colleagues and customers, the financial resilience of the company and the agility to move quickly when we emerge from these unprecedented circumstances,” said the Chairman.

O’Shea said it was a huge honour to be appointed to lead Centrica.

“The company has a long history of serving customers and having strong market positions. Over recent years it has built the capabilities to help our customers transition to a low carbon future,” he added.

“Beyond this present emergency our focus will be on creating value for all of our stakeholders through delivering growth in our customer-facing businesses, the structural simplification of the group, and building on the undoubted strengths and capabilities we have in our people and our businesses today,” stated the CEO.

O’Shea’s remuneration package will consist of a basic salary and variable incentive arrangements.

The key changes to his current arrangements are a base salary of £775,000 ($974,200) and a reduction from a 15 percent to 10 percent pension contribution.

The company has commenced a search for a new CFO since O’Shea won’t be returning to the post.

Feb 13 (LNGJ) - Centrica, the UK energy company with LNG imports from Qatar and future volumes from the US, said its UK operating utility, British Gas, will extend its price freeze for its customers on its standard tariff until August 2017. The UK natural gas retail market is the most competitive in Europe with over 50 suppliers. “Despite increases in external costs in the last year British Gas has consistently offered one of the cheapest standard energy deals available,” Centrica said. “In December, we promised to take tangible action to improve how the energy market works for all our customers. That effort continues,” it added.