Offshore gas store could reopen to stave off fuel shortage
CENTRICA IS talking to the Government about reopening its gas storage facility off the Yorkshire coast amid growing concern that this winter could bring energy shortages.
The partially depleted Rough gas field is around 18 miles off the East Coast.
Its storage facility – which could hold around nine days’ supply of the UK’s gas – was mothballed in 2017 as being uneconomical.
But Russia’s invasion of Ukraine has caused global supply problems and rocketing prices. Now the energy firm has applied to the North Sea Transition Authority for a licence for gas storage.
There are concerns there could be energy shortages if Vladimir Putin cuts off supplies to Europe this winter, combined with low wind speeds that would have an impact on electricity generation.
Reports suggest Rough could cost £2 billion to reopen but could be running by September.
Centrica has previously put forward £1.6bn plans to transform the facility to hold lowcarbon hydrogen fuel, saying a repurposed Rough “has the potential to provide around half the UK’s hydrogen storage requirements”. It has confirmed that in the longer term Rough “will have an important role in the hydrogen economy”.
Deirdre Michie, chief executive of trade body Offshore Energies UK, said she hoped ministers would recognise the urgency of the situation and meet them.
“The UK gets 75 per cent of its total energy from oil and gas so the risk of energy shortages this winter is clearly growing,” she said. “The causes are largely outside the UK’s control but the Government can minimise these risks by planning ahead – starting now. That means engaging with the energy industry early to find ways of maximising UK supplies of gas and oil.
“We have called for an energy summit with the Chancellor and Prime Minister to draw up those plans and this needs to happen soon because winter will not wait.” Ms Michie said they needed clarity over the way the windfall tax would be implemented.
The Government last month raised overall taxation on the profits of oil and gas producers from 40 to 65 per cent.
Around 95 per cent of Rough’s gas reserves have been recovered and it currently accounts for around one per cent of the country’s daily output, according to GlobalData.