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Markets & Forecasts

UK unlikely to incentivise creation of new gas storage

The UK’s storage capacity has dropped to just 2% of demand, but it is doubtful the government will step in to encourage more to be built The UK’s storage capacity has dropped to just 2% of demand, but it is doubtful the government will step in to encourage more to be built.
By Peter Stewart 29 November 2018 Europe & Russia / Pipelines, Storage & Power 0 33487
The now-closed Rough storage facility. (Centrica)

The UK government shows no sign of incentivising the creation of more gas storage capacity, despite calls to provide financial support for new projects after Centrica’s ageing Rough facility was shut down in 2017. 

A UK parliamentary committee published evidence on 31 October on whether the country needed new storage capacity. It included submissions from consultants, transmission system operator (TSO) National Grid, energy-intensive industries, gas storage operators and the Department of Business, Energy and Industrial Strategy (BEIS). 

The BEIS insisted that...