Centrica buys stake in Trinidad gas block

2nd Jun 2009 07:11

Gas supplier Centrica took another step in its plan to reduce its dependence on the wholesale markets by agreeing to buy a stake in a gas development block in Trinidad.Centrica has signed an agreement with Canadian Superior Energy under which Centrica could buy up to a 45% stake in gas development Block 5(c), situated off the south east coast of Trinidad, for US$142.5m (£87m) in cash.The block is operated by BG Group, which has a 30% stake.Centrica said recoverable reserves attributable to a 45% equity stake have been estimated at around 650bn cubic feet, which is equivalent to about half of Centrica’s current UK gas reserves. Undrilled exploration opportunities could bump up this estimate.The block is close to existing gas pipeline infrastructure and liquefied natural gas export facilities and could supply Centrica’s UK customers.‘Gas produced from this block could help address our long-term structural hedge position by reducing our exposure to volatile wholesale gas prices, offering a potential future gas supply option for our British Gas customers in the UK and for our Direct Energy customers in North America,’ said Sam Laidlaw, chief executive of Centrica.