CNA: Centrica plc: Centrica announces decision not to proceed with Baird and
Caythorpe gas storage projects
UK Regulatory Announcement
23 September 2013
Centrica announces decision not to proceed with Baird and Caythorpe gas
Centrica plc has taken the decision not to proceed with its new-build gas
storage project at Baird in the UK Southern North Sea and to put its project
at Caythorpe in East Yorkshire on hold indefinitely. This decision was taken
in light of weak economics for storage projects and the announcement by the UK
Government on 4 September ruling out intervention in the market to encourage
additional gas storage capacity to be built.
As a result of this decision, Centrica will write off all costs incurred and
committed on these projects and expects to recognise impairments and
provisions totalling approximately £240 million as an exceptional cost in the
Group’s 2013 preliminary financial results.
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Centrica Investor Relations: 01753 494900
Centrica Media Relations: 0800 107 7014
Notes to Editors:
*Centrica will continue to own and operate Rough, the largest gas storage
facility in the UK and capable of meeting approximately 10% of the UK’s
current peak demand.
*Caythorpe is a depleted onshore gas field in East Yorkshire. Centrica
acquired a 100% interest in the Caythorpe gas storage project from Warwick
Energy in September 2008.
*Baird is a largely depleted gas field in the Southern North Sea. Centrica
acquired a 70% interest in the Baird gas storage project from Perenco in
February 2009, with Perenco retaining the remaining 30% interest.
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