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Union urges government and Centrica to secure future of Rough gas storage facility
Overview
The Unite union has called on the government and Centrica to secure the future of the UK's largest gas storage facility, Rough, located off the East Yorkshire coast. Centrica wants to invest £2bn to upgrade the facility and eventually store hydrogen, but is seeking a government support mechanism, warning that the facility could otherwise close and put hundreds of jobs at risk. While the union has suggested public ownership as an option, the government has maintained that the investment is a commercial decision for Centrica.
Key points
- The Unite union is urging the government and Centrica to protect the Rough gas storage facility, which accounts for about half of the UK's gas storage capacity.
- Centrica plans to invest £2bn to upgrade the facility and store hydrogen, but is seeking a government 'cap and floor' pricing model.
- Unite warns that closure of the facility could lead to the loss of 100 skilled jobs and 350 supply chain jobs, and has suggested public ownership if necessary.
- Centrica's licence for the facility is due to expire in April 2027.
- The government has stated that the investment remains a commercial decision for Centrica, noting that UK gas supply is diverse and resilient.