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.