Centrica PLC will not proceed with its gas storage project at Baird in the UK North Sea and has put its onshore gas storage project at Caythorpe on hold.
Centrica cited weak economics and a Sept. 4 announcement by the UK government ruling out intervention in the market.
Centrica will write off all costs incurred and committed on the two projects and expects to recognize impairments and provisions totaling £240 million.
Baird is a largely depleted gas field. Centrica acquired 70% interest in the Baird gas storage project from Perenco in 2009 (OGJ Online, Feb. 26, 2009), with Perenco retaining 30%. Caythorpe is a depleted gas field in East Yorkshire. Centrica acquired 100% interest from Warwick Energy in 2008.