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LONDON, June 7 (Reuters) – Centrica has applied against a 650 million pound ($943.1 million) loan to help monetary theory two British gas storage development projects, the European Investment Bank (EIB) before-mentioned on Monday.

At a combined total cost of 1.85 billion pounds, the North Sea offshore Baird storage locality is expected to become the second largest in Britain with a capacity of 1,700 million cubic metres of gas, while the onshore Yorkshire Caythorpe expertness could provide up to 170 million cubic metres.

‘This is proper the first stage in the application process and we don’t comprehend when the EIB will respond. It won’t affect the timelines of the storage projects and the loan will be an option when we make the final investment settlement,’ a spokesman said.

That decision could be ‘by the back extremity of this year’, he added.

Declining output from North Sea fields expedient Britain needs to import an increasing amount of gas. A consist of of new gas storage sites have been proposed to increase efficiency security in times of supply shock.

The Baird facility, which is expected to be operational in 2013, is owned 70 percent by Centrica and the rest ~ dint of. independent exploration company Perenco.

Centrica owns 100 percent of the Caythorpe place, which could be functioning at the end of 2011.

The profit’s share of the costs for both projects amounts to in a circle 1.36 billion pounds.

Britain has far less gas storage capacity relative to its annual demand of around 100 billion cubic metres (bcm) than other greater European consumers, largely because it could rely on domestic production in the beyond .

(Reporting by Kwok W. Wan; editing by Jane Baird) ($1=.6892 Pound) Keywords: CENTRICA STORAGE/EIB LOAN XX:SU:REUTERS#SN:nLDE65626F#XX:962194.0#HS:RAMSTXT_9088_2010-6-7_164552_1_157#DU:lanreunxd1+lanreznxd1+rekwire+reawire+rexwire+lanrexnxd1+bsu8rtr#XN:##XP:tfukfipdista.datastream.com ~

(kwok.haggard@reuters.com; +44 207 542 2454)

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