Centrica Warns of Alarming Low Storage Levels, Leaving Britain with Less Than a Week’s Gas Supply
Gas storage levels in the UK are alarmingly low, with reserves now standing at just under a week’s worth of demand, the operator of the nation’s largest storage site, Centrica, has warned.
According to Centrica, the sharp drop in storage levels is primarily due to the recent cold snap, which led to higher demand for gas-fired power generation. The UK remains highly dependent on gas for both domestic heating and electricity production, and this increased demand has put significant strain on available gas supplies.
As of January 9, 2025, gas storage is approximately 26% lower compared to the same time last year, leaving the sites about half full. This puts the country at a critical disadvantage with far less stored gas than required to meet typical demand.
The Rough gas storage facility in the North Sea, located off England’s east coast, accounts for roughly 50% of the UK’s total storage capacity. However, the situation has been exacerbated by lower-than-usual storage levels going into December, caused by an early winter onset. Adding to the difficulties, high gas prices during the Christmas period hindered efforts to replenish supplies.
Centrica noted that this issue is not unique to the UK, as Europe has also seen a decline in storage levels. Across the continent, gas storage was at 69% at the start of this week, compared to 84% last year at the same time.
Unlike other European countries, the UK does not have a legally enforced gas storage target. Centrica’s CEO, Chris O’Shea, pointed out that the UK’s reliance on gas storage is an anomaly when compared to the rest of Europe, and the current crisis highlights the risks associated with this gap in policy.
Gas storage plays a crucial role in stabilising energy supplies, especially as countries transition towards renewable sources. It helps mitigate price volatility in the short term and ensures that supplies are available during periods of high demand or unforeseen disruptions.
However, since the onset of the Russia-Ukraine conflict and subsequent sanctions on Russian gas supplies, the UK has been particularly vulnerable. The disruption to Russian gas flows has forced the UK, along with other European countries, to scramble for alternative supplies, further emphasising the importance of maintaining higher gas storage levels.
