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HomeRenewablesbuilt environmentLack of gas storage pushes prices to 3 year high

Lack of gas storage pushes prices to 3 year high

This winter, UK gas prices have climbed to their highest level (above £64.52/MWh) in more than three years, while the country has among Europe’s lowest gas storage capacity, leaving it more exposed to supply disruption amongst Gulf tensions.

The UK’s current gas storage capacity is 1.7 billion cubic metres, according to the Department for Energy Security and Net Zero (DESNZ), based on National Gas data. That’s equivalent to roughly seven days of average winter demand.

There is only one large scale gas storage facility (Rough) mentioned in many UK gas storage conversations, however it is an ageing asset and would need significant investment in order to hold a meaningful amount of gas and support the UK’s winter demand – even then, it would likely not be ready in time.

National Gas says Great Britain’s storage system is fast-cycling, with gas frequently injected and withdrawn, rather than following the more seasonal storage model used in much of Europe – however with Gulf disruption causing supply issues for gas, this could lead to a difficult winter for the UK.

However, storage is only one part of the picture. The UK holds reliance with Norwegian pipeline gas, UK North Sea production, LNG imports and more. Although storage may be inefficient, it may not be insufficient. National Gas said Great Britain had sufficient gas supply to meet peak demand during winter 2025 – prices are high this year, but storage isn’t the only infrastructure the UK relies on.

Energy Live News
Energy Live Newshttps://www.energylivenews.com
This article first appeared on Energy Live News, an award winning news service. Their mission is to give you balanced news, analysis, commentary of energy from their dedicated team of quality journalists and production staff.
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