Global Markets

Rough’s permanent closure will increase price volatility

The permanent closure of the UK's Rough storage facility will cause major volatility in gas prices at the NBP during winter The permanent closure of the UK's Rough storage facility will cause major volatility in gas prices at the NBP during winter.
By Catriona Scott 21 June 2017 0 26471

The UK’s Rough gas storage facility is set to close for good after its operator, Centrica Storage, announced earlier this week that it is applying for a permanent shutdown of the site. The technical problems facing the ageing storage facility are considerable, and the cost of overcoming them makes it economically unviable to keep Rough open. This means the UK will lose its largest gas storage site, which had accounted for 70% of the country’s storage capacity.

Rough had already been set to remain closed through...