Combined Cycle, Gas

Centrica to commence tender process for Langage power project

18 March 2004 – UK utility Centrica plc says it will commence a tender process tender process as it seeks to evaluate the full costs of developing a combined cycle gas turbine (CCGT) power station of up to 1010 MW at Langage, Devon in the UK

The Langage project, which was acquired by Centrica in August 2004, is one of only three large scale power station developments in the UK which are consented and aligns with Centrica’s strategy of generating a growing proportion of its own electricity for British Gas customers. Langage has specific locational benefits, being situated in the south-west which has little existing generation capacity. An operational plant would assist the south-west and the UK’s wider security of supply position.

Centrica has progressed the project since acquisition by signing agreements with Transco and National Grid Company for the necessary infrastructure connections to be developed. Initial site preparation work is also expected to take place at the site during the second half of 2005.

The Invitation to Tender process is expected to commence in the second quarter of 2005 with evaluation of bids expected to be completed by the end of the year. The tender process, along with the long term outlook for spark-spreads through the life of the power station, will enable a decision to be taken on the commercial viability of moving ahead to construction.

Jake Ulrich, Managing Director of Centrica Energy, said: “Faced with increasing wholesale prices in the UK’s changing energy market, Langage could provide an opportunity to increase the amount of power generation we can call upon to meet our British Gas customers’ needs.

“We have already moved the project forward and now need to gain a full understanding of the economics, including construction costs, before we are able to make a firm decision about future development at Langage.”