British Gas and Shell - LPG

Centrica PLC
16 October 2000


BRITISH GAS AND SHELL GAS CONCLUDE SERIES OF LPG
AGREEMENTS

Centrica plc, which trades as British Gas, has announced
that British Gas and Shell 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 Vonkerman, 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.'


Enquiries:

Jo Sommers         Centrica Investor Relations   01753 758114
Neville Barltrop   Centrica Media Relations      01753 758442
Cerris Tavinor     Shell Media Relations         020 7934 3045


Notes:

Centrica plc trades as British Gas, Goldfish and the AA.