Overview

• Centrica has stopped filling the Rough gas storage site, citing annual operating losses exceeding £100 million and financial unsustainability.
• The company is negotiating with the UK government for a cap-and-floor pricing mechanism to enable a £2 billion redevelopment of the facility.
• If decommissioned, the UK’s gas storage capacity would drop from 12 days to just six, significantly reducing energy resilience compared to European neighbors.
• Centrica proposes converting the site into the world’s largest hydrogen storage facility, aligning with net-zero goals and offering potential consumer savings.
• The UK government views the facility’s future as a commercial decision but remains open to proposals that provide taxpayer value.