UK's gas stores could be lower than previously by end of winter, Centrica says
LONDON, Nov 29 (Reuters) - Britain's gas stores could be lower at the end of winter compared to previous years, as a cold snap and low wind power has caused gas demand to rise, Centrica, operator of the country’s largest gas storage site, said on Friday
Britain is heavily reliant on gas for its home heating and also uses a significant amount of gas in electricity generation meaning its gas stores are an important source of energy security and help to moderate price swings.
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"The UK’s gas storage is likely to be low compared to previous years this winter, according to analysis by Centrica," the company said.
"The colder November has led to early withdrawal from storage sites, reducing storage capacity in the UK before winter officially starts," it said.
Centrica’s Rough gas storage site, a depleted gas field off England's east coast, makes up around half of the country’s gas storage capacity and has pumped a total of 4.35 billion cubic feet (bcf) of gas into the country’s gas system so far in November, powering up to 3.8 million homes on some days, Centrica said.
Rough stopped storing gas in 2017 but was reopened in 2022 at lower capacity amid the global energy crisis following Russia’s invasion of Ukraine.
Centrica said it could invest 2 billion pounds ($2.54 billion) to upgrade the site further but is seeking support from the government through a price cap and floor mechanism to make this viable.
Price shocks and supply fears caused during the crisis have led Europe to enforce mandatory gas storage targets, with Europe’s gas stores 90% full by Nov. 1 each year.
Britain does not have a mandatory gas storage target.
(Reporting by Susanna Twidale; editing by David Evans)