Centrica and CSL welcome CMA’s decision to terminate the Rough Undertakings

Centrica Plc and Centrica Storage Limited (CSL) welcome the Competition & Markets Authority’s (CMA’s) decision to grant their request to be released from the Rough Undertakings (see: Rough gas storage facility: review of undertakings).

Centrica and CSL requested to be released from the Undertakings as CSL has decided that it can no longer operate Rough as a storage facility and is seeking all relevant consents and approvals to extract the recoverable gas from the reservoir.

Following extensive tests on Rough’s well stock, CSL concluded that the facility was no longer capable of safe injection operations due to the age and condition of the asset, and that due to the economics of seasonal storage and the cost of refurbishing or rebuilding the facility, neither pathway would be economic.

CSL will continue to seek all other relevant approvals and consents to extract the recoverable gas from the reservoir.