Centrica Warns of Alarmingly Low Gas Storage Levels with Less Than a Week of Demand Remaining
The government has reassured that there is no energy blackout, stating there is sufficient gas and electricity to meet the country’s needs through winter.
British Gas owners have expressed concerns over the UK’s low winter gas storage levels.
Centrica reported that gas storage inventory is 26 percent lower than last year, leaving storage at about half capacity.
According to Centrica, this situation is a result of colder weather, increased gas-powered energy demand, and the halt in Russian gas pipeline supplies through Ukraine.
Despite this, Downing Street remains confident in the country’s ability to endure winter energy needs.
Gas Storage
The UK’s gas storage capacity is significantly lower compared to other European countries, with enough storage for only 12 average days or 7.5 peak winter days.
Centrica’s CEO, Chris O’Shea, highlighted the low gas storage levels in the UK, pointing out the need for increased storage capacity.
Centrica also underscored the challenges posed by the UK’s reliance on imported Liquified Natural Gas (LNG) for energy supplies.
Reliance on Imported LNG
Most imported LNG in the UK comes from the US, requiring a long journey of over 3,000 nautical miles.
Geopolitical instability affecting trade routes could divert US LNG to other markets, creating competition for UK supplies.
O’Shea emphasized the need for domestic energy storage capacity to be enhanced.
He stated, “Investing in storage capacity is essential to ensure energy security and balance for the UK’s energy system.”
Reports of an impending energy blackout in the UK were refuted by a Number 10 spokesman, asserting adequate gas and electricity supply for winter.
No Energy Blackouts
Chris O’Shea, group chief executive of Centrica, speaks to the media at the Scottish Gas Academy in Hamilton, Lanarkshire, Scotland, on July 7, 2023. Andrew Milligan/PA Wire
The spokesman emphasized the government’s commitment to transitioning to renewable energy sources by 2030 to enhance energy independence and security.
Cold Snap
Recently, the UK experienced extremely cold weather, with the Met Office recording the coldest January night in 15 years.
Sub-zero temperatures were observed in various parts of the country, prompting warnings for ice and cold weather conditions.
The Met Office forecasts a gradual milder weather pattern across the UK following the cold snap.
PA Media contributed to this report.
