Centrica's deal with the US is important - but we won't feel the benefits for aeons

It's a start, but just a start.

Today Centrica struck a £10bn supply deal with the US  - describing it as a "landmark agreement".

"This... represents a significant step forward in our strategy, enabling Centrica to strengthen its position along the gas value chain and helping to ensure the UK's future energy security," said Sam Laidlaw, Centrica's chief executive in a statement.

Just how landmark is it? Well, it's effectively the first time the UK has signed a gas import deal with the US - so it's important for a number of reasons.

US natural gas prices are very much cheaper than those in the UK and Europe - around a quarter to a fifth. Here's the thing though: this deal won't lower UK prices all that much, as although the price of the contract is indexed to the US gas market, there is a significant fixed fee on top, which roughly doubles that price. In addition, the volumes of gas involved aren't big enough to have much of an impact on price anyway.

But the important thing about this deal is that it's the first - and therefore a gateway for all sorts of similar contracts.

"More and more deals will get signed with the US from Europe" says Jonathan Lane, Head of Power Consulting at GlobalData. "This will push the US price up, and the European price down. Natural gas prices will eventually harmonise".

The other benefit of the deal is one of security. At the moment the UK relies on a small number of gas suppliers - and heavily on Qatar. The contract with the US will bring some diversity, increasing potential sources and energy security if a pipeline fails.

This is all set very much in the future though - the first shipments aren't due until 2018, so the current strain on our gas supplies may continue for a while.

More on this here.

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Grant Shapps on the campaign trail. Photo: Getty
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Grant Shapps resigns over Tory youth wing bullying scandal

The minister, formerly party chairman, has resigned over allegations of bullying and blackmail made against a Tory activist. 

Grant Shapps, who was a key figure in the Tory general election campaign, has resigned following allegations about a bullying scandal among Conservative activists.

Shapps was formerly party chairman, but was demoted to international development minister after May. His formal statement is expected shortly.

The resignation follows lurid claims about bullying and blackmail among Tory activists. One, Mark Clarke, has been accused of putting pressure on a fellow activist who complained about his behaviour to withdraw the allegation. The complainant, Elliot Johnson, later killed himself.

The junior Treasury minister Robert Halfon also revealed that he had an affair with a young activist after being warned that Clarke planned to blackmail him over the relationship. Former Tory chair Sayeedi Warsi says that she was targeted by Clarke on Twitter, where he tried to portray her as an anti-semite. 

Shapps appointed Mark Clarke to run RoadTrip 2015, where young Tory activists toured key marginals on a bus before the general election. 

Today, the Guardian published an emotional interview with the parents of 21-year-old Elliot Johnson, the activist who killed himself, in which they called for Shapps to consider his position. Ray Johnson also spoke to BBC's Newsnight:


The Johnson family claimed that Shapps and co-chair Andrew Feldman had failed to act on complaints made against Clarke. Feldman says he did not hear of the bullying claims until August. 

Asked about the case at a conference in Malta, David Cameron pointedly refused to offer Shapps his full backing, saying a statement would be released. “I think it is important that on the tragic case that took place that the coroner’s inquiry is allowed to proceed properly," he added. “I feel deeply for his parents, It is an appalling loss to suffer and that is why it is so important there is a proper coroner’s inquiry. In terms of what the Conservative party should do, there should be and there is a proper inquiry that asks all the questions as people come forward. That will take place. It is a tragic loss of a talented young life and it is not something any parent should go through and I feel for them deeply.” 

Mark Clarke denies any wrongdoing.

Helen Lewis is deputy editor of the New Statesman. She has presented BBC Radio 4’s Week in Westminster and is a regular panellist on BBC1’s Sunday Politics.