Centrica, the operator of the UK's largest natural gas storage facility, Rough, has announced it will be decommissioned without government support. The company stopped filling the facility amid worries over its financial viability and faces a potential loss of 100 million this year. Centrica's CEO has highlighted the need for government collaboration to discuss expanding and revamping Rough due to the high costs involved, specifically mentioning a potential loss of 2 billion if significant investments were made without favorable market conditions.
If we were to simply spend 2 billion redeveloping this field and the summer-winter gas price stays the same, then we will lose that 2 billion.
Centrica said earlier this month that it remains in talks with ministers about government cooperation to expand and revamp its Rough facility off the coast of Yorkshire.
The facility in the North Sea is the largest of its kind in the UK, but Centrica stopped filling it with natural gas last month.
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