The operator of the UK’s largest gas storage facility has raised concerns over Britain’s “critically low” gas reserves, with less than a week’s worth of demand available due to recent extreme weather.
Centrica, the owner of British Gas, cited plunging temperatures and increased demand for gas-fired power as the primary reasons for the depleted stocks. The company also warned that efforts to replenish supplies could drive energy prices higher in the coming weeks.
Gas plays a significant role in the UK’s energy system, serving as a primary source of home heating and electricity generation. Recent data from National Grid revealed that natural gas accounted for 53% of power generation, while renewables contributed only 16%, partly due to unfavourable weather conditions.
The UK’s energy reliance on gas has grown since coal’s removal from its energy mix, leaving gas generation to pick up the slack, particularly during cold snaps when wind generation often falls due to high-pressure weather systems.
Earlier this week, the electricity grid operator issued a rare notice to energy providers to boost output, seeking to avert the risk of power outages.
Gas reserves running low
Centrica reported that, as of 9 January, gas storage levels across the UK were 26% lower than at the same point last year, with reserves sitting at roughly half capacity. This equates to less than a week’s worth of demand remaining.
A spokesperson from the Department for Energy Security and Net Zero responded to Centrica’s warning by stating: “We are confident in our ability to meet demand this winter due to the UK’s robust and diverse energy system. Our long-term energy security will be ensured through continued investment in clean, domestically-produced power.”
The government has faced criticism for its reluctance to expand gas storage capacity or invest in additional North Sea gas fields, focusing instead on transitioning to renewable energy as part of its strategy to combat climate change.
Potential investments and challenges
Centrica’s Rough gas storage site, located in the North Sea off the east coast of England, provides around half of the UK’s total storage capacity. The company has proposed a £2bn investment to enhance the site’s capacity but is seeking government support through a price cap and floor mechanism to make the project financially viable.
Entering December, gas storage levels were already below average due to early winter weather and reduced wind power generation. Persistent high gas prices further compounded the difficulty of replenishing reserves during the festive season.
Centrica noted that the challenge of low gas storage is not unique to the UK, pointing out that storage levels across Europe stood at 69% earlier this week, down from 84% at the same time last year. However, unlike Europe, Britain
