Provision of services to manage the commercial interface between gas commodity players and network owners
Dortmund based RWE Gas AG and London based Lattice Group plc have reached agreement in principle to launch an independent European gas logistics company. RWE Gas has a 60% and Lattice a 40% shareholding in the joint venture, which will have its headquarters in Dortmund. The two companies will make an investment of around £6m (€10m) in the new company, which at launch, planned for March 2002, will employ approximately 20 people.

"In the wake of liberalisation, RWE Gas and Lattice will take advantage of the new opportunities on the European energy markets, " said Dr Manfred Scholle, CEO of RWE Gas. "This new company, as a service provider for both gas traders and gas shippers, will process and carry out gas transportation assignments without discrimination."

Nick Woollacott, Group Managing Director, Lattice Enterprises, added: "The company also sees itself as a service provider to network owners. It will support them in managing third party access to their networks. In this way, the network owners will benefit from Lattice's neutrality and experience of operating in the most liberalised market in Europe combined with the in-depth European knowledge and expertise of RWE Gas."

The range of products offered to gas traders and gas shippers extends from the negotiation stage through to full monitoring of transmission contracts. In the case of network owners, the company will provide a complete service to manage third-party access arrangements (TPA).

Notes to Editors

RWE Gas brings together as the lead company all the gas activities of the RWE group, including its substantial gas industry participations at home and abroad. Taking into account all participations, RWE Gas has distributed in 2000 around 280 Bn. kWh of natural gas in Europe, and is the number two in Germany. In the European market, RWE Gas is also active in Poland, Hungary, The Netherlands, and the Czech and Slovak Republics.

Lattice Group is one of three successor companies of what was formerly British Gas plc. The Group's principal subsidiary is Transco plc, the company responsible for the development and operation of the majority of Britain's gas infrastructure. Transco has developed systems to enable the competitive supply of gas to 20m consumers in Great Britain, and the commercial framework for gas trading. The Group specialises in the safe and reliable provision, management and servicing of infrastructure networks. Lattice Enterprises is one of three business sectors within Lattice Group, and comprises a number of competitive services businesses.