UK gas operator 'concerned' about dwindling storage levels
According to Centrica, UK storage levels have been depleted due to colder weather and Ukraine's suspension of Russian gas transits. Read Full Article at RT.com
TroibNews 
Centrica has warned that UK gas storage levels are alarmingly low due to cold weather and Ukraine's cessation of Russian gas transits, leading to heightened demand.
In a press release shared on Friday, Centrica indicated that the current inventory at Rough, the largest gas storage facility in the UK operated by the company, is 20% lower than it was at the same time last year, despite being fully stocked before winter began.
The report highlights that this winter, Britain's gas storage is facing significant pressure as it confronts both freezing temperatures and surging energy prices. The combination of unusually cold weather and Ukraine's termination of Russian pipeline gas transit has resulted in depleted gas inventories across the UK.
Centrica stated, “Gas storage was already lower than usual heading into December as a result of the early onset of winter. Combined with stubbornly high gas prices, this has meant that it has been more difficult to top up storage over Christmas.”
As of January 9, UK storage sites were noted to be 26% lower than last year's levels at the same point in time, leaving them approximately half full.
The situation is “echoed across Europe,” the company added, with European storage reported at 69% capacity as of January 7, a decrease from 84% during the same period last year. This decline occurs despite many European countries implementing minimum storage level mandates ahead of winter.
Chris O’Shea, Group Chief Executive of Centrica, remarked, “We are an outlier from the rest of Europe when it comes to the role of storage in our energy system and we are now seeing the implications of that.”
In contrast to the EU, which established mandatory gas storage targets following the energy crisis of 2022, the UK does not have such requirements.
The surge in European energy prices has been exacerbated by Ukraine's decision not to extend a contract with Russia's Gazprom beyond 2024, which has effectively disrupted the flow of natural gas to several EU nations. This situation has prompted urgent discussions to extend the EU's emergency gas price cap to mitigate potential shocks across the region.
Allen M Lee for TROIB News
In a press release shared on Friday, Centrica indicated that the current inventory at Rough, the largest gas storage facility in the UK operated by the company, is 20% lower than it was at the same time last year, despite being fully stocked before winter began.
The report highlights that this winter, Britain's gas storage is facing significant pressure as it confronts both freezing temperatures and surging energy prices. The combination of unusually cold weather and Ukraine's termination of Russian pipeline gas transit has resulted in depleted gas inventories across the UK.
Centrica stated, “Gas storage was already lower than usual heading into December as a result of the early onset of winter. Combined with stubbornly high gas prices, this has meant that it has been more difficult to top up storage over Christmas.”
As of January 9, UK storage sites were noted to be 26% lower than last year's levels at the same point in time, leaving them approximately half full.
The situation is “echoed across Europe,” the company added, with European storage reported at 69% capacity as of January 7, a decrease from 84% during the same period last year. This decline occurs despite many European countries implementing minimum storage level mandates ahead of winter.
Chris O’Shea, Group Chief Executive of Centrica, remarked, “We are an outlier from the rest of Europe when it comes to the role of storage in our energy system and we are now seeing the implications of that.”
In contrast to the EU, which established mandatory gas storage targets following the energy crisis of 2022, the UK does not have such requirements.
The surge in European energy prices has been exacerbated by Ukraine's decision not to extend a contract with Russia's Gazprom beyond 2024, which has effectively disrupted the flow of natural gas to several EU nations. This situation has prompted urgent discussions to extend the EU's emergency gas price cap to mitigate potential shocks across the region.
Allen M Lee for TROIB News
