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.