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Business reporter, BBC News
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The UK’s largest gas storage facility could be closed if the government does not help support a redevelopment of the site, the boss of the company which owns it has told the BBC.
Centrica chief executive Chris O’Shea told BBC One’s Sunday with Laura Kuenssberg programme that its Rough storage facility would be “shut down” without government help over energy pricing.
Centrica – which owns British Gas – says the site is set to lose £100m this year, and it wants to invest £2bn in the facility so it can use it to store more gas, including hydrogen.
The government said the future of Rough was a commercial decision for Centrica but it was open to discussing proposals.
The Rough facility is off the coast of East Yorkshire, and accounts for about half of the capacity the UK has to store gas.
It was closed in 2017, but then partly reopened in October 2022 following the energy crisis triggered by Russia’s invasion of Ukraine.
Earlier this month, Centrica said it was in “constructive discussions” with the government for a support mechanism that would allow investment in the Rough site to proceed.
The company is seeking a “cap and floor” pricing mechanism. This means that if energy prices fall below a certain level its revenues will be topped up, but prices would be capped if they rise too high.
“What we’re asking for is simply for the government to help create the conditions which will unlock £2bn of investment,” Mr O’Shea told the
