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Centrica has dropped plans for two gas storage investments worth more than £1.5 billion due to "weak economics".
Earlier this month, the government ruled out extra subsidies for gas storage, saying the costs outweighed the potential benefits.
The energy company wrote off £240 million spent developing the projects at Baird in the southern North Sea and Caythorpe in East Yorkshire.
It announced on Monday the Baird project, which would have increased the UK’s storage capacity by a third, has been cancelled. Centrica held a 70 per cent stake in the scheme, with Anglo-French oil and gas company Perenco owning 30 per cent.
Meanwhile, Centrica’s wholly-owned Caythorpe scheme has been put on hold “indefinitely”. It would have added 5 per cent to the UK’s storage capacity.
Centrica continues to operate Rough, the largest gas storage facility in the country.
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