Sat. Jun 7th, 2025
Gas Storage Facility’s Future Uncertain, Energy Leader Warns

The UK’s largest gas storage facility, Rough, faces potential closure unless the government provides financial support for its redevelopment, Centrica’s CEO, Chris O’Shea, has warned the BBC.

Speaking on BBC One’s Sunday with Laura Kuenssberg, O’Shea stated that without governmental aid to address energy pricing challenges, the Rough facility would be decommissioned.

Centrica, the parent company of British Gas, projects a £100 million loss for Rough this year and seeks £2 billion in investment to expand its capacity and facilitate hydrogen storage.

While the government maintains that Rough’s future is a commercial decision for Centrica, it expressed openness to reviewing any proposals.

Located off the coast of East Yorkshire, Rough holds approximately half of the UK’s gas storage capacity. Closed in 2017, it partially reopened in October 2022 due to the energy crisis stemming from the Ukraine conflict.

Centrica recently announced “constructive discussions” with the government regarding a support mechanism to enable investment. This involves a “cap and floor” pricing mechanism to ensure revenue stability.

O’Shea emphasized that the request is for government support to facilitate £2 billion in investment, creating thousands of construction jobs and safeguarding existing skilled offshore roles.

He highlighted that without investment, the site will be decommissioned, significantly reducing the UK’s gas storage resilience from 12 days to six— Rough currently provides six of those days. Full capacity expansion could increase this to 25-30 days.

A Department for Energy Security and Net Zero spokesperson responded that while the decision rests with Centrica, the government is open to proposals that offer value for taxpayers’ money.

O’Shea previously stated that the current energy pricing model prevents new renewable energy from substantially lowering electricity prices. While acknowledging the importance of decarbonization and its economic potential, he highlighted the existing parity in pricing for new renewable projects, meaning they won’t immediately decrease costs.

He described the 2030 clean energy target as ambitious but achievable, although challenging. The Department for Energy Security and Net Zero countered that their 2030 mission is achievable and will lead to a more secure, lower-cost energy system.

O’Shea’s previous £4.5m salary, and recent shareholder opposition to Centrica’s pay plans were also addressed. He clarified that he doesn’t set his own salary, acknowledging the high market rate for his position.

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