Six wells at the UK’s Rough storage facility are being permanently closed, operator Centrica Storage announced on Friday. The number of operational wells at the UK’s largest storage site will drop from 30 to 24, reducing its daily withdrawal capacity. Two of the wells facing closure had already been out of service for an extended period, but the remaining four had been active until this year.
Gas from storage is crucial for a flexible and responsive supply during peak periods to meet short-term spikes in demand. Consequently, while Centrica had anticipated the need to close the wells because of age and safety issues, the move nevertheless reduces the UK’s winter supply flexibility. The result could be greater price volatility during peak winter consumption periods, as spikes in demand will be more likely to result in short-term price jumps.
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