Centrica close Morecambe Bay gas field

mattInternational, Utilities Market Regulation, Wholesale Utilities Markets

Centrica have taken the decision to leave Britain’s largest gas field shut.

Centrica Logo

The Morecambe Bay gas field in the North Sea, owned by British Gas parent company Centrica, is to remain closed.

Centrica blamed the new taxes on profit gained from North Sea production as the reason for the closure.

Centrica said one month ago that the new tax on the North Sea gas fields meant that purchasing gas on wholesale markets worked out cheaper, making the field not economically viable.

The tax was a surprise inclusion of George Osborne’s budget for the year.

Energy Secretary Chris Huhne defended the North Sea tax rises, stating that the profitability of the North Sea had risen by 50% over the last two years and the tax is justified.

Centrica, among other companies hit by the tax rise, have hinted that the country’s energy security could be in jeopardy by leading suppliers to purchase from overseas rather than generate from within the UK.