Centrica looks to sever contract ties with Gazprom
Centrica is exploring ways to annul gas supply contracts with Russian partners including Gazprom as a result of the war in Ukraine, UK media reported on March 1.
The owner of UK gas distributor British Gas has a medium term supply deal with the UK segment of Gazprom Marketing & Trading, which is yet to be targeted by UK government sanctions. Centrica is nevertheless looking at options to withdraw from the deal, and has begun talks with Gazprom officials.
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The company says the contract covers gas trading from the open market, rather than supplies from Russia directly, and does not expect a material impact to overall gas distribution volumes.
"We are shocked by the events unfolding in Ukraine and the needless loss of lives," said Centrica CEO Chris O'Shea in an emailed statement, "We intend to exit our gas supply agreements with Russian counterparts, principally Gazprom, as a matter of urgency."
Centrica's bid to cancel trading with Russian-linked businesses follows similar moves by international oil companies BP, Shell and Equinor as well as others in the energy industry and large gas customers with direct supply agreements. Also breaking with Gazprom is the UK county council for Suffolk, which said it would cancel its £10mn ($13.3mn) purchase agreement, according to media reports.