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Centrica warns it will close key Rough gas storage without long term support
Centrica says it will not even inject gas into the Rough facility this winter, and it has set a closure deadline for next April absent a government deal to back a 2.0 billion pound expansion.
Centrica, owner of British Gas, warned that it will close the Rough gas storage facility off the Yorkshire coast unless it can secure long term financial support from the UK government for a planned 2.0 billion pound expansion, according to the Guardian Business. The company said Rough, described as the UK’s largest gas storage facility, will face closure next April if no deal is reached. Centrica also said it is not injecting gas into Rough for the current winter. Centrica Chief Executive Chris O’Shea argued the site is essential to UK energy security and said the decision is ultimately for the government rather than a purely commercial call. The outlet notes the warning comes as an earlier UK government report highlighted an emerging risk to gas supplies around the end of the decade if critical infrastructure is unavailable during severe cold.
Potential supply disruption concerns cited in the report refer to scenarios where gas supply could fall short of demand across 2030-31 pathways if key infrastructure, such as an import terminal or the 725-mile Langeled pipeline from Norway, is out of action.