UK’s natural gas stocks hit by early winter cold and lack of wind | Money News

The owner of the UK’s largest natural gas storage site has warned of depleted stocks by the end of winter due to early cold weather and a lack of wind power.

Centrica, which operates the Rough facility in the North Sea, said stocks could be lower compared to previous years due to higher demand.

It said that in addition to the chilly autumn, high pressure weather systems meant the country’s wind power generation had fallen short, placing a greater need for gas to fill the energy void.

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Gas stores are important as they enable countries to not only guarantee supplies during the transition to renewables but also avoid short term price spikes on wholesale markets.

High storage is also an important tool in moderating price swings.

But the UK has been particularly vulnerable in this space since Russia’s invasion in Ukraine when sanctions meant key taps to Europe were shut off, forcing nations such as the UK and Germany to scramble for supplies.

Rough, a depleted gas field, had been decommissioned in 2017 but was partially reopened in 2022 in a bid to bolster resilience as the unprecedented gas price shock took hold, giving rise to the cost of living crisis.

The site currently accounts for about half the UK’s stored gas capacity.

Centrica said it had already pumped 4.35 billion cubic feet of gas into the country’s gas system in November to date.

That gas was powering up to 3.8 million homes on some days, the energy giant added.

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The company, which also owns the country’s largest household supplier British Gas, said: “The UK’s gas storage is likely to be low compared to previous years this winter, according to analysis by Centrica.

“The colder November has led to early withdrawal from storage sites, reducing storage capacity in the UK before winter officially starts.”

The statement by Centrica lays bare the UK’s reliance on natural gas at a time when the drive for energy security and the battle against climate change are at odds with each other.

Data from National Grid on Thursday showed gas accounting for 31% of electricity output – behind renewables, including wind, on 52%.

Nuclear and Biomass were the next largest contributors.

Imports and gas played a bigger role earlier in the month when the first widespread frosts hit large parts of the country.

There has also been a widespread snow event, though that was accompanied by more wind.

Centrica said it could invest £2bn to upgrade Rough further, but it would need support from the government through a price cap and floor mechanism to make this viable.