UK Storage encounters a Rough patch

On April 12 Centrica Storage announced the suspension of injections at the Rough gas storage facility until at least May 2018. Whilst the market had to some extent been pre-warned of the problems the relatively muted response was, nevertheless, surprising. Does this reaction signal a declining role for long range storage or is the market in for a big shock? This comment considers the role of Rough and other forms of supply flexibility in the GB gas market and, if there is still a case for a seasonal facility such as Rough, how this might be achieved. It concludes that whilst a relatively relaxed market response to the possible demise of Rough is rational, the possibility of supply disruptions coinciding with sustained high demand suggests that it may be too soon to call time on seasonal storage in Great Britain.

By: Chris N Le Fevre

Latest Tweets from @OxfordEnergy

  • Jonathan Stern on the latest Groningen earthquake: I think it is likely to accelerate even further the phase-out of… https://t.co/d1tGcAIAjp

    May 23rd

  • About 43% of the industrial gas demand in Europe could, in theory, decline in the 2020s as a result of decarbonizat… https://t.co/0iMqP4dCsd

    May 23rd

  • New OIES comment on Saudi Arabia’s challenging balancing act: If premature return of withheld supplies back into th… https://t.co/J0LoxVkSAJ

    May 23rd

Sign up for our Newsletter

Register your email address here and we will send you notification of new publications, comment, articles etc. automatically.