Centrica granted licence to reopen UK’s largest gas storage site as winter crisis looms
Centrica has been awarded a licence to reopen the UK’s largest gas storage site, boosting plans to shore up domestic energy supplies this winter and reduce Western reliance on Russian energy supplies.
The North Sea Transition Authority (NSTA) has greenlit plans to bring the Rough site back online, which is based off the East Coast of England in the Southern North Sea.
The award of a licence allows Centrica to progress with seeking the further regulatory approvals required, before gas storage operations can commence, including further approvals required from the NSTA.
There are hopes the facility could be reopened as soon as this autumn, according to The Telegraph, however ministers are still in talks with Centrica about possible financial support to help it reopen.
This could see a levy added to consumer bills, deepening the cost of living crisis, with energy specialists already forecasting the consumer price cap will rise above £3,000 per year this winter.
The Rough storage site was closed down five years ago, with Centrica citing economic factors for its scrapping after the Government opted against providing financial support.
However, following Russia’s invasion of Ukraine, there is increased focused in Downing Street on supply security – with the Government unveiling plans to boost domestic energy generation.
Key Russia-Germany pipeline Nord Stream came back online today after 10 days of scheduled maintenance, however it is still recording 60 per cent shortages with the Kremlin looking to put pressure on Europe ahead of winter.
The EU yesterday told member states to cut their gas demand by 15 per cent in a bid to avoid rationing and blackouts this winter.
The UK receives around four per cent of its gas needs from Russia, however it is exposed to knock-on effects from Europe’s market including soaring prices.