Centrica Will Exit Agreements With Gazprom, Russian Counterparts

By Anthony O. Goriainoff

Centrica PLC said Tuesday that it intends to exit its gas supply agreements with its Russian counterparts, and with Gazprom PJSC in particular "as a matter of urgency," due to the war in Ukraine.

The U.K. energy company, which owns British Gas, said it was working through the details of how best to do this and that it will ensure it remains compliant with all relevant sanctions.

The company said that although its supply contract wasn't affected by current U.K. sanctions, it was nonetheless exploring how it can be terminated.

The company said that Gazprom has been an active trading participant in the U.K. gas market for several years and is a counter party to U.K. energy traders.

It added that it had a medium-term contract with the Russian company's U.K. entity--Gazprom Marketing & Trading--and that although it provided some gas volumes, this was a fraction of Centrica's downstream demand. The company said that as the gas wasn't physical gas molecules from Russia, it could be sourced anywhere.

"We are shocked by the events unfolding in Ukraine and the needless loss of lives," Chief Executive Chris O'Shea said.

The move comes after U.K. energy companies such as Shell and BP have maneuvered to exit Russian operations following the Russian invasion of Ukraine.

Write to Anthony O. Goriainoff at [e-mail]

(END) Dow Jones Newswires

March 01, 2022 13:08 ET (18:08 GMT)

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