The last few years have seen profound changes in the British gas industry. Privatisation of the nationalised gas transportation and supply business as British Gas plc was followed by the gradual introduction of competition into first industrial and then domestic gas sales. Finally, in 1998, all gas customers can choose their source of supply. Competition put British Gas plc into the position of being the operator of the transportation system at the same time as being one of a number of gas suppliers who sell the gas. However, it was recognised that the gas transportation system formed a natural monopoly-nlo one seriously envisaged a multiplicity of pipeline systems. As a result of organisational and commercial tensions, British Gas decided to seek demerger into two companies, which finally took place in 1997.
One company, BG plc, included Transco the pipeline operator together with exploration and production, international business and research and technology. Centrica plc was formed out of British Gas Trading, Retail and Service organisations and also took ownership of the British Gas plc owned Morecambe Bay gas fields. However, both companies saw value in retaining the name British Gas. In Great Britain, Centrica has sole use of the British Gas name--so domestic customers can still obtain their gas from "British Gas" if they wish. Outside Great Britain, BG uses the name British Gas Intem.ational, so that throughout the company's international business BG and British Gas are synonymous.
Transco is regulated by the Office of Gas Supply (Ofgas) to ensure that customers get value for money. As a result of this, and other changes, Transco is now a very different organisation to the old British Gas. New processes have had to be developed to enable the transportation system to be operated safely and efficiently in a situation where the end use customers purchase their gas from a third party. This has required substantial development in information handling processes. In addition, to meet the demanding requirements of the transportation formula agreed with Ofgas, costs have had to be driven down. These changes in the company have been reflected in substantial re-organisation and reduction in staff numbers.
British Gas has historically invested in R&D, and its IResearch and Technology organisation has enjoyed a high reputation as one of the world's leading technical resources in the energy business. As might be expected, this organisation has also seen profound changes over recent years. In 1993, a purpose built research centre-the Gas Research and Technology Centre (GRTC), was opened in Loughborough, replacing three research stations in the Midlands and London. The Engineering Research Station, situated near Newcastle, closed in 1995-staff and facilities being relocated at GRTC. Research & Technology, renamed BG Technology in 1998, has changed from being a series of corporate research labs to a technology business with a keen commercial focus. While research remains an integral part of its activity, the emphasis is very much on accessing and developing the technologies which can address the problems facing the business, and creating new opportunities which will give the company an advantage in the international market place. BG Technology works at the leading edge of technology across the whole of the gas chain from explloration and production via gas transportation, to gas utilisation in the domestic, commercial and industrial markets. It is recognised as a world leader in the field of gas technology provision.
In the UK, distribution is defined as gas transportation below 7 bar pressure. Historically, the company supported the development of new technologies for distribution operation and BG Technology, and its predecessors, have scored success with products such as polyethylene jointing systems, "Swagelining" close fit PE lining, the "Rotamole" guided boring system, pipe bursting, anaerobic joint spraying and many more. Despite the benefits gained from these products, further opportunities exist to develop technologies that can make a difference to distribution activities. Although there has been a strategy of targeted replacement of old iron pipe for many years, 48% of Transco's distribution system still consisl:s of cast and ductile iron pipe. Costs are incurred in maintaining and repairing this iron system, and because of the large number of operations involved, even marginal