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

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.