Five questions answered on Centrica’s £10bn gas deal

Deal to safeguard UK energy.

British Gas owner, Centrica, has today announced that it has stuck a deal with America to secure future gas for the UK. We answer five questions on the deal.

What are the details of the deal?

The company have struck a ten year deal with American Cheniere Energy Partners for £10bn to  supply 91,250,000 mmbtu (89 billion cubic feet) of annual liquefied natural gas (LNG), ensuring UK gas supply in the near future.

How many homes do Centrica expect to supply via this gas deal?

As many as 1.8 million homes.

What else has Centrica said about the deal?

Sam Laidlaw, Chief Executive of Centrica, said in a press statement: “In an increasingly global gas market, this landmark agreement 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.”

In the same statement the Prime Minister David Cameron also said: “I warmly welcome this commercial agreement between Centrica and Cheniere.  Future gas supplies from the US will help diversify our energy mix and provide British consumers with a new long-term, secure and affordable source of fuel."

Will the deal help the recent gas shortage caused by the ongoing cold weather?

No, as the Louisiana-based plant will not begin its first shipments to the UK until 2018.

UK demand is currently running 32 per cent above normal seasonal demand.

However, a shipment from Qatar is to dock in Milford Haven today, to ease pressure on supply.

What has the government said about this recent strain on the UK gas supply?

Energy minister John Hayes yesterday said there was no gas shortage crisis, speaking to the Telegraph he said: “We get our supplies from a diverse range of sources and the market is proving to be highly responsive to the UK’s needs,”

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
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Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

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