The UK’s main gas network operator has assured the nation that it is adequately positioned to secure the needed gas supply this winter. This reassurance comes after a prominent energy supplier warned that reserve supplies were dwindling due to recent cold weather, stating there was “less than a week” of gas left.
National Gas, which manages the gas transmission system in Britain, stated that the overall situation remains stable across the eight major gas storage sites in the country. The operator highlighted that the UK sources its gas from a variety of channels, including pipelines from Europe and shipments from global sources, which means they can effectively meet demand.
This statement was made in response to Centrica’s comments that the UK had insufficient gas reserves, with storage sites only about halfway full as of Thursday and at “concerningly low” levels. The ongoing cold weather, with temperatures plummeting close to minus 20C in some areas, has caused a surge in household heating needs, especially as many homes rely on gas. This temperature drop follows a halt in Russian gas flows to Europe through Ukraine less than two weeks ago.
Natasha Fielding from Argus Media, a pricing agency, noted that there is no immediate worry regarding the security of gas supply, thanks to ample options for sourcing additional gas if necessary. However, she warned that to facilitate these imports, UK gas prices might need to rise further, impacting costs for both businesses and consumers.
The UK has lower gas storage capacity compared to mainland Europe, making it more vulnerable to quick increases in demand. Currently, about half of the UK’s gas requirements are fulfilled through imports, including pipeline gas from Norway and Europe, as well as liquefied natural gas.
Despite Centrica’s concerns, the energy data group Montel indicated that there are no clear signs of a supply slowdown. This sentiment is echoed by the recent decline in UK wholesale gas prices, which reached their lowest levels since late December, trading modestly higher by the end of the week.
Centrica is calling for government assistance to enhance and expand its Rough gas storage facility off the Yorkshire coast, aiming to develop it into a hydrogen storage site in the future. This facility, which is the largest of its kind in the UK, partially reopened in 2022 after closing in 2017 at the request of the previous government during the height of the energy crisis instigated by Russia’s invasion of Ukraine.
Centrica’s chief executive, Chris O’Shea, emphasized that the UK is lagging behind Europe in terms of gas storage capacity and claimed that, had the Rough facility been operating at its full potential, UK households could have saved about £100 on their winter gas and electricity bills over recent years.
Currently, the energy price cap set by the regulator Ofgem is £1,738 per year for a typical household, slightly higher than £1,717 at the end of 2024. The Department for Energy Security and Net Zero reassured the public that it expects to have enough gas and electricity capacity to satisfy winter demand and is working on new business models for hydrogen storage, with forthcoming details on supporting prospective projects.