Centrica shelves gas storage projects, to incur 240 million pounds in costs

Reuters

LONDON (Reuters) - Centrica (LSE:CNA) said it would incur 240 million pounds in costs after it abandoned plans for a new-build gas storage project in the UK's southern North Sea and put another in Yorkshire, northern England, on hold indefinitely.

"This decision was taken in light of weak economics for storage projects and the announcement by the UK Government on 4 September ruling out intervention in the market to encourage additional gas storage capacity to be built," it said on Monday.

It said it would write off all costs incurred on the projects and expects to recognise impairments and provisions totalling about 240 million pounds as an exceptional cost in its full-year results.

The government decided earlier this month against intervening in the energy market to boost gas storage capacity, saying that subsidising projects would be too expensive for taxpayers.

(Reporting by Brenda Goh; Editing by Paul Sandle)

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