Centrica plc has reached agreement with South Coast Power Limited, a joint venture between ScottishPower and CSW International, for the supply of gas to the new Shoreham Power Station.
The 400 megawatt combined cycle gas turbine plant, currently being built on the site of the former Brighton 'B' power station, is expected to start operation in the fourth quarter of 2000.
Under the agreement, Centrica, through its subsidiary British Gas Trading Ltd, will supply approximately 2.5 billion therms of gas over 15 years.
Jake Ulrich, Managing Director of Centrica's energy management group, said: "This contract is a good fit alongside our existing gas supply portfolio. It will make an important contribution to our strategic gas sales position, and provides clear benefits to both parties."