The UK’s biggest gas storage facility is almost doubling in capacity in a move that will boost energy resilience over the coming winter.
Centrica’s site at Rough, 18 miles off the East Yorkshire coast, had been mothballed from 2017 but was partially reopened last October, when it could store about 30 billion cubic feet of gas.
Further investment over the summer will boost capacity to 54 billion cubic feet, enough to heat 2.4 million homes over the winter.
The UK has diverse gas supplies with connections to Norway and other European countries, plus three liquefied natural gas import terminals, yet still has some of the lowest gas storage levels in Europe.
Britain is able to store enough gas for 12 days of average demand, or 7.5 peak winter days, whereas Germany’s capacity is 89 days, France is 103 days and the Netherlands is 123 days.
Centrica, the owner of British Gas, said that it would inject gas into the Rough facility when there was excess supply then return it into the UK’s gas network when customers needed it most, keeping prices lower during peak demand.
Before the capacity increase, Rough could hold enough gas for three days of average demand and two days of peak winter demand. In future it can provide six days at average demand or 3.5 days at peak winter demand.
Rough now provides half of the UK’s total gas storage. Centrica said its long-term ambition was to turn the field into the world’s largest long-duration low-carbon energy storage facility, capable of storing natural gas and hydrogen.
Chris O’Shea, 49, the Centrica chief executive, said the resilience of the UK’s energy system needed to be substantially improved. “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,” he said.
“It 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.”
Energy prices soared last year, contributing to a cost of living crisis, but are set to ease from today when a new lower a cap on bills comes into effect.
While gas prices have fallen from last year’s record levels, energy costs remain stubbornly higher than in the past and exposed to supply shocks.
O’Shea warned against complacency. “I think that there’s a danger that we get complacent because last winter was OK and because prices are quite stable now,” he told the BBC. The Centrica boss said the company was ready to invest £2 billion to repurpose the Rough field as the world’s biggest methane and hydrogen storage facility, helping to deliver a net-zero electricity system by 2035 and creating 5,000 skilled jobs.
He said the facility had the potential to help the UK economy return to being a net exporter of energy. He said that “no taxpayer cash is required”, although to achieve its aims would require “the right regulatory support framework”.
Separately, Centrica called on the government to simplify energy bills and to introduce a social tariff for those who needed additional support with their bills.
Shares in Centrica, which is Britain’s biggest household energy supplier, added 4p, or 3.25 per cent, to 124p.