The Stublach gas storage facility was developed by GDF Suez subsidiary Storengy and currently offers the gas market access to 40 million cubic metres of capacity which could help to protect users against high demand or supply disruptions which could lead to dramatic market price spikes.
A further three caverns will be available by the end of December 2014, bringing capacity to 100 million cubic metres, but the site plans to ultimately expand to four times that volume to make it the largest onshore storage facility in the UK.
“As the UK becomes more dependent on gas imports and the likelihood of an increasingly flexible demand, new storage sites will play an important role to meet the needs of the gas market, and by 2020 Stublach will be the largest UK onshore underground gas storage facility,” a statement from the company said.
The need for greater domestic gas storage was highlighted in early 2013 when the UK’s stocks were depleted following a long, cold winter leading to dramatic market price spikes for near-term gas. Concerns over the UK’s limited gas storage capacity were raised again this year with the heightened risk of a disruption of European gas supplies via Ukraine from Russia.
Although the UK does not depend on Russian gas deliveries its storage capacity relative to consumption stands at just 6 per cent compared to a European average of 22 per cent, meaning the UK is more exposed to changes in the market price.
“Sites like Storengy at Stublach play a crucial role in our energy security strategy, allowing gas suppliers and others the flexibility to store gas safely in preparation for when demand is high, or when other supplies are restricted,” Treasury minister Lord Deighton said.