Centrica project terminations cost company £240m

Utilities company Centrica has announced its decision not to proceed with two gas storage projects in Yorkshire and the North sea, costing the company £240m. (Release)

Its new-build gas storage project at Baird in the UK Southern North Sea has been terminated, whilst its £1.4bn project at Caythorpe in East Yorkshire has been put on hold indefinitely.

Centrica's decision comes after the September government announcement ruling out market intervention to help with additional gas storage builds, along with weak economics for storage projects.

The company expects writing off of the costs incurred to total about £240m.