UK natural gas stocks hit by early winter cold, lack of wind | Money News Aitrend

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

Centrica, which operates the North Sea crude plant, said stocks could be lower than in previous years due to higher demand.

It said that in addition to the cold autumn, high-pressure weather systems meant the country’s wind power generation was insufficient, leading to an increased need for gas to fill the system. energy empty.

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Gas reserves are important because they allow countries not only to guarantee supply during the transition to renewable energy, but also to avoid short-term price spikes in wholesale markets.

High storage is also an important tool for moderating price fluctuations.

But the UK has been particularly vulnerable in this area since Russia’s invasion of Ukraine, when sanctions closed key access to Europe, forcing countries like the UK and Germany to rush to get supplies.

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

The site currently accounts for around half of the UK’s gas storage capacity.

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

This gas supplied 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 domestic supplier, British Gas, said: “UK gas storage is likely to be low compared to previous years this winter, according to Centrica analysis.

“The colder November led to an early withdrawal of storage sites, reducing storage capacity in the UK before the official start of winter. »

Centrica’s statement lays bare the UK’s reliance on natural gas at a time when efforts towards energy security and the fight against climate change are at odds.

National Grid data released on Thursday shows gas accounts for 31% of electricity generation – behind renewables, including wind, at 52%.

Next come nuclear power and biomass.

Imports and gas played a bigger role earlier this month when the first widespread frosts hit much of the country.

There was also a widespread snow event, although it was accompanied by more wind.

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