The UK has ‘less than a week’ of gas storage, says Centrica

Get free updates

Register easily UK power myFT Digest — delivered straight to your inbox.

The owner of energy company British Gas has said the UK has “less than a week” of gas reserves as temperatures drop.

As of Thursday, yields at gas storage facilities were 26 percent lower than at the same point last year. Central He said on Friday, he left them at about half full and at a “low level”.

Britain’s cold spell, with temperatures dropping to minus 20C in places, has fueled demand for much of its gas-based heating.

The drop in temperatures, which is forecast to last through the weekend, comes less than two weeks after Russian gas flows to Europe through Ukraine ran out.

“The UK has less than a week’s worth of gas in storage,” Centrica said in a statement on Friday.

“We’re outside the rest of Europe when it comes to the role of storage in our energy system and we’re now seeing the implications of that,” added CEO Chris O’Shea.

Britain has far less storage capacity than countries in mainland Europe, making it more vulnerable to rising gas demand.

European states are also linked by extensive pipelines, allowing flexible supplies between countries.

About half of Britain’s gas needs are now met by imports, and domestic gas prices have risen by around 20 per cent since the start of the winter.

The UK competes with mainland Europe for gas and liquefied natural gas supplies, and its gas prices need to be at a meaningful premium over European prices to encourage traders to ship gas to the UK.

Centrica is seeking government support to invest in and upgrade its dry gas storage facilities to enable long-term hydrogen storage.

The facility on the Yorkshire coast is the largest in the UK. In the year It was closed in 2017, but partially reopened in 2022 at the request of the former conservative government during the energy crisis sparked by Russia’s full-scale invasion of Ukraine.

The energy supplier has said it is ready to invest £2bn to upgrade and redevelop the site, but wants the government to introduce a “capital and floor” scheme to support its revenue.

O’Shea Rowe said: “Had it operated at full capacity in recent years, it would have saved UK households £100 on their gas and electricity bills every winter.”

The current level of control ofgem Energy price capLasting until March, a typical household is paying £1,738 a year for gas and electricity, compared to £1,717 at the end of 2024.

Natasha Fielding, head of European gas prices at pricing agency Argus Media, said the UK could import more LNG, or pipeline gas, from mainland Europe via two large pipelines. But “they all want the UK gas price premium for the EU to rise further,” she warned.

The Department of Energy Security and Net Zero said that there is no risk and “we are confident that we will have sufficient gas supply and electricity capacity to meet demand this winter, thanks to our diverse and resilient energy system.”

“We are committed to designing a new business model for hydrogen storage infrastructure. More information will be provided in due course as future projects will have the opportunity to apply for funding,” he added.