The largest natural gas storage unit in the UK to close

15/12/2017 15:55 Natural Gas


The U.K. consented to a demand from the operators directed to close the old Rough Natural Gas Storage unit. The facility is situated in the North Sea and is the biggest one in the British state.

U.K.'s Competition Market Authority (CMA) revised Rough's commitments on the North Sea gas storage facility after an appeal made by the operators, Centrica Plc. and Centrica Storage Limited (CSL). Recently, these two companies asked for their release from the undertakings as CSL announced its decision not to run the storage facility any more.

After long and comprehensive assessments, CSL found that Rough’s facility was no longer meeting the necessary conditions for safe injection operations because of its age and condition of the asset. Due to the expenses in the seasonal storage and the cost of restoring or upgrading the facility, neither way would be financially reasonable.

Rough is considered the biggest gas storage site in the U.K. It is utilized by market participants to store gas in the summer and supply that gas to meet peak demand in the winter. Rough can cover 10 percent of the country’s peak day demand. 

The Rough field started gas production and processing in 1975. Meanwhile, in 1985, the gas field was transformed by its then owners - British Gas to deposit gas to meet seasonal supply/demand differences.

The closure of the storage site is subject to U.K.’s Oil & Gas Authority approval.

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