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 turns "the nasty party" back on Theresa May

The Labour leader exploited Conservative splits over disability benefits.

It didn't take long for Theresa May to herald the Conservatives' Copeland by-election victory at PMQs (and one couldn't blame her). But Jeremy Corbyn swiftly brought her down to earth. The Labour leader denounced the government for "sneaking out" its decision to overrule a court judgement calling for Personal Independence Payments (PIPs) to be extended to those with severe mental health problems.

Rather than merely expressing his own outrage, Corbyn drew on that of others. He smartly quoted Tory backbencher Heidi Allen, one of the tax credit rebels, who has called on May to "think agan" and "honour" the court's rulings. The Prime Minister protested that the government was merely returning PIPs to their "original intention" and was already spending more than ever on those with mental health conditions. But Corbyn had more ammunition, denouncing Conservative policy chair George Freeman for his suggestion that those "taking pills" for anxiety aren't "really disabled". After May branded Labour "the nasty party" in her conference speech, Corbyn suggested that the Tories were once again worthy of her epithet.

May emphasised that Freeman had apologised and, as so often, warned that the "extra support" promised by Labour would be impossible without the "strong economy" guaranteed by the Conservatives. "The one thing we know about Labour is that they would bankrupt Britain," she declared. Unlike on previous occasions, Corbyn had a ready riposte, reminding the Tories that they had increased the national debt by more than every previous Labour government.

But May saved her jibe of choice for the end, recalling shadow cabinet minister Cat Smith's assertion that the Copeland result was an "incredible achivement" for her party. "I think that word actually sums up the Right Honourable Gentleman's leadership. In-cred-ible," May concluded, with a rather surreal Thatcher-esque flourish.

Yet many economists and EU experts say the same of her Brexit plan. Having repeatedly hailed the UK's "strong economy" (which has so far proved resilient), May had better hope that single market withdrawal does not wreck it. But on Brexit, as on disability benefits, it is Conservative rebels, not Corbyn, who will determine her fate.

George Eaton is political editor of the New Statesman.