Energy giant Centrica boosts capacity at Rough gas storage site
The facility had been mothballed from 2017 but was partially reopened last year.
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Your support makes all the difference.Energy giant Centrica has increased capacity at the UK’s largest gas storage site to provide it with a bigger safety cushion for next winter.
The Rough storage site had been mothballed from 2017 but was partially reopened last year, when it was able to store around 30 billion cubic feet (bcf) of gas.
On Friday, the parent firm of British Gas said it had increased storage at the site off the coast of East Yorkshire to 54 bcf.
The facility will now provide the equivalent volume of gas to heat 2.4 million homes over winter, the company said.
The energy firm said its long-term ambition is to turn the gas field into the largest long-duration, low-carbon energy storage facility in the world, capable of storing natural gas and hydrogen.
But any plans to expand the site – which Centrica estimates could become one of the world’s largest at 200 bcf – would need billions of pounds of investment.
To do that, Centrica has said it needs an agreement with Government which would make the investment worthwhile.
It has explored the idea of a cap-and-floor system, used by other energy companies, which limits its losses but also its profits should gas prices fluctuate.
But the business has so far been unable to reach an agreement with ministers. Without extra work it will be unable to store more than 54 bcf.
Centrica group chief executive Chris O’Shea said: “The resilience of the UK’s energy system needs to be substantially improved.
“We are delighted to play our part by further expanding the UK’s gas storage capacity.
“Rough is not a silver bullet for energy security, but it plays a critical role in increasing capacity and supply confidence over the winter months.
“Rough can help our energy system by storing natural gas when there is a surplus and producing this gas when the country needs it during cold snaps and peak demand.”
It comes as energy prices for households are set to drop for households from Saturday due to a decrease in Ofgem’s energy price cap following a fall in wholesale gas prices.