A union has called on the government and energy firm Centrica to work together to secure the future of the UK’s largest gas storage facility.
The Rough facility, situated 18 miles (29km) off the East Yorkshire coast, accounts for about half of the capacity the UK has to store gas.
Centrica – which owns British Gas – wants to invest £2bn in the facility so it can store more gas, with a longer-term ambition to store hydrogen, but is seeking government support.
Unite said there were concerns Centrica would close the facility unless the government agrees a new funding formula, leading to the loss of 100 skilled jobs, along with a further 350 jobs in the supply chain.
The union has urged “all options” to be considered to keep the facility operating, including public ownership.
Unite general secretary Sharon Graham said: “The Rough storage facility is essential to the energy security of the UK. Threats of closure are endangering jobs and our ability to keep the lights on and heat homes.
“The general public will not forgive the government or Centrica if this facility is allowed to close and our energy supply becomes even more risky in an increasingly uncertain world.”
The facility’s licence is due to expire in April 2027 and, under current plans, Centrica would not seek a renewal unless the government agrees a long-term support mechanism, according to the Local Democracy Reporting Service.
The company is seeking a “cap and floor” pricing model to guarantee minimum returns while limiting profits when prices rise.
Chief executive Chris O’Shea said: “The UK’s energy security cannot be taken for granted, and Rough is an opportunity to strengthen our national security and resilience, safeguard existing jobs, create new ones and drive investment and growth in the UK.
“We are ready to invest £2bn in critical national infrastructure. Government should not allow this opportunity to be lost.”
The government has previously said it was open to discussions but the investment was a commercial decision for Centrica.
Source: www.bbc.co.uk
