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UK Faces Gas Storage Crisis After Middle East Conflict

Financial Times Companies •
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Energy groups are urging the UK government to expand gas storage capacity following the Middle East conflict, which has caused gas prices to surge over 50% since attacks began on February 28. Britain’s reliance on “just-in-time” imports and dwindling North Sea reserves has exposed critical vulnerabilities, with 13 days of current storage capacity deemed insufficient by experts.

The crisis echoes the 2021-2022 energy turmoil when Russia restricted European gas flows, costing the UK £44bn in subsidies. Now, firms like Centrica—owner of the Rough gas storage facility—are lobbying for government revenue guarantees to upgrade infrastructure. dCarbonX, backed by Italian group Snam, also seeks support for a proposed Irish Sea storage site. Critics argue expanded storage is vital to prevent price spikes and ensure resilience amid falling domestic production.

National Energy System Operator warned in 2023 of “emerging gas supply shortages” by the 2030s as North Sea output declines. Energy professor Sir Dieter Helm called the UK’s dependence on pipelines and cables a “national security risk,” noting one Norwegian pipeline supplies 30% of UK gas. The government is considering mandated storage targets and revenue support for operators, though officials stress proposals must deliver “value for money” for taxpayers.

While National Gas claims current supplies are stable, long-term risks persist. Shadow Energy Secretary Claire Coutinho warned that continued production declines will force “reconsideration” of storage needs. The Department for Energy Security insists the UK must become a “clean energy superpower” to lower bills and enhance security, but the future of Rough storage remains a commercial decision for Centrica. Experts stress urgency: without action, the UK risks repeating past crises.