Energy boss warns over future of gas storage facility
Summary
The UK's biggest gas storage facility, Rough, might close if the government doesn't help with its redevelopment. Centrica, the company that owns it, wants to invest £2 billion to expand its capacity, but it is losing money and needs a pricing plan that ensures stable revenue. The government views the site's future as a business decision for Centrica but is open to discussing potential support.Key Facts
- Rough is the largest gas storage facility in the UK, located off East Yorkshire.
- Centrica owns Rough and needs government support to invest £2 billion in upgrading it.
- Without government help, Centrica expects to lose £100 million this year and might close the facility.
- Rough currently provides about half of the UK's gas storage capacity.
- The facility was closed in 2017 and partially reopened in 2022 following energy supply issues from the Ukraine crisis.
- Centrica seeks a "cap and floor" pricing mechanism to stabilize revenues.
- The UK currently has 12 days of gas storage; losing Rough would cut this to 6 days, but full capacity could extend it to 25-30 days.
- The government is open to discussing proposals as long as they are cost-effective for taxpayers.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.