British Gas Pours $2 Billion Into LNG Terminal, Even Though UK Gas Demand Hit Lowest Level In 30+ Years In 2024

The owner of British Gas has placed a £1.5bn bet on the UK’s future reliance on fossil fuel imports after striking a deal to buy Europe’s biggest gas import terminal. Centrica plans to partner with a US private equity firm to acquire the Isle of Grain terminal in Kent, which can import 15m tonnes of liquefied natural gas a year, even after Britain’s gas demand fell last year to its lowest level since the early 1990s.

The pair will buy the gas terminal from the FTSE 100 energy company National Grid, which in recent years has sold off its interests in Britain’s gas infrastructure in favour of investing in electricity grids. Chris O’Shea, the chief executive of Centrica, said the “strategic asset” would continue to support the UK’s energy security “for many decades to come” during the transition to net zero.

The deal comes after Centrica’s £20bn deal with Norway’s state energy company earlier this summer to buy enough gas to meet nearly 10% of the UK’s needs for the next decade. Under the agreement, Centrica will buy around 5bn cubic metres of gas from Equinor – enough to supply 5m UK homes – every year from this winter until 2035 at the prevailing market rate.

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The UK has already reduced significantly its use of gas to generate electricity owing to a rise in electricity imports from Europe and lower energy demand overall. Wind power generated more electricity than gas in 2024, contributing 30% of the UK’s power needs against just over 26% from gas plants as low carbon generation hit a record high.

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https://www.theguardian.com/environment/2025/aug/14/british-gas-owner-buys-15bn-gas-terminal-big-bet-on-fossil-fuel-reliance