Centrica has reopened the Rough gas storage facility after completing engineering upgrades over the summer and commissioning over early autumn.
It has now made its first injection into the site, consisting of a partially depleted gas field in the North Sea, since it was closed more than five years ago.
Centrica said the work done so far means the facility is operating at around 20% of its previous capacity, nevertheless making it the UK’s largest gas storage site and adding 50% to the country’s total storage volume. The company said it will be able to store up to 30 billion cubic feet of gas this winter.
Centrica Group chief executive Chris O’Shea said “I’m delighted that we have managed to return Rough to storage operations for this winter following a substantial investment in engineering modifications.
“Our long-term aim remains to turn the Rough field into the world’s biggest methane and hydrogen storage facility, bolstering the UK’s energy security, delivering a net zero electricity system by 2035, decarbonising the UK’s industrial clusters, such as the Humber region by 2040, and helping the UK economy by returning to being a net exporter of energy.
“In the short term we think Rough can help our energy system by storing natural gas when there is a surplus and producing this gas when the country needs it during cold snaps and peak demand. Rough is not a silver bullet for energy security, but it is a key part of a range of steps which can be taken to help the UK this winter.”
Centrica closed the facility off the coast of Yorkshire in 2017 after findings faults with the gas wells used for injections and withdrawals, which the company said made it unsafe and uneconomical to continue operating.
Commenting on the reopening of the site, Investec senior analyst Martin Young said the site is understood to already be holding 14 billion cubic feet of gas reserve and with Centrica able to inject roughly 2 million therms per day, it would take 70 days to fill the currently available capacity.
“Centrica is operating Rough on a merchant basis and the rate of injection will depend on near term gas prices remaining depressed versus forwards as Centrica locks in a spread,” he added.
“With forward gas greater than 300 pence per therm in 2023, we estimate that daily injection could be worth circa £5 million per day, the timing of recognition depending on when withdrawals are made.”