UK Gas Reserves 'Concerningly Low' at Less Than a Week's Supply, Despite Government Confidence

Jan 10, 2025, 01:12 PM

Centrica, the owner of British Gas, has warned that the UK's gas reserves are at 'concerningly low' levels due to a combination of freezing temperatures and the cessation of Russian gas pipeline supplies through Ukraine. As of January 9, 2025, UK gas storage sites were reported to be 26% lower than the previous year, with reserves at about half capacity, equating to less than a week's worth of gas demand. Despite these warnings, the UK government has expressed confidence in having sufficient gas and electricity capacity to meet demand this winter, citing a diverse and resilient energy system. The situation is exacerbated by the UK's lower total gas storage capacity compared to other European countries like France, Germany, and the Netherlands. Centrica has highlighted the need for investment in storage capacity, particularly at its Rough facility, to mitigate future risks and potentially reduce energy bills for UK households. Chris O'Shea, Centrica's chief executive, noted that if the Rough facility had been operating at full capacity in recent years, it could have saved UK households £100 on their gas and electricity bills each winter. Centrica is ready to invest £2 billion in upgrading the Rough facility. National Grid data showed that natural gas accounted for 53% of power generation in the UK, with renewables contributing 16%. European gas storage levels are at 69%, down from 84% the previous year.