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

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PMQs review: Jeremy Corbyn bids for the NHS to rescue Labour

Ahead of tomorrow's by-elections, Corbyn damned Theresa May for putting the service in a "state of emergency".

Whenever Labour leaders are in trouble, they seek political refuge in the NHS. Jeremy Corbyn, whose party faces potential defeat in tomorrow’s Copeland and Stoke by-elections, upheld this iron law today. In the case of the former, Labour has already warned that “babies will die” as a result of the downgrading of the hospital. It is crude but it may yet prove effective (it worked for No to AV, after all).

In the chamber, Corbyn assailed May for cutting the number of hospital beds, worsening waiting times, under-funding social care and abolishing nursing bursaries. The Labour leader rose to a crescendo, damning the Prime Minister for putting the service in a “a state of emergency”. But his scattergun attack was too unfocused to much trouble May.

The Prime Minister came armed with attack lines, brandishing a quote from former health secretary Andy Burnham on cutting hospital beds and reminding Corbyn that Labour promised to spend less on the NHS at the last election (only Nixon can go to China). May was able to boast that the Tories were providing “more money” for the service (this is not, of course, the same as “enough”). Just as Corbyn echoed his predecessors, so the Prime Minister sounded like David Cameron circa 2013, declaring that she would not “take lessons” from the party that presided over the Mid-Staffs scandal and warning that Labour would “borrow and bankrupt” the economy.

It was a dubious charge from the party that has racked up ever-higher debt but a reliably potent one. Labour, however, will be satisfied that May was more comfortable debating the economy or attacking the Brown government, than she was defending the state of the NHS. In Copeland and Stoke, where Corbyn’s party has held power since 1935 and 1950, Labour must hope that the electorate are as respectful of tradition as its leader.

George Eaton is political editor of the New Statesman.