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UK plans to restart operations at a major gas storage facility for winter season

Discussions continue between the federal government and energy company Centrica regarding the potential reopening of a significant gas storage facility. This move is part of contingency plans being considered ahead of winter, under the shadow of the ongoing conflict in Ukraine. Centrica's...

Resuming operations at a significant UK gas storage facility for winter utilization
Resuming operations at a significant UK gas storage facility for winter utilization

UK plans to restart operations at a major gas storage facility for winter season

UK Government Explores Backup Strategies to Secure Gas Supplies

Amidst growing concerns over potential disruptions in gas supplies from Russia and Norway, the UK government is considering various backup strategies to ensure a steady supply of gas. These strategies include the potential reopening of Centrica’s gas storage facilities, extending the lifespan of nuclear power plants, and the development of large-scale energy storage projects.

One of the key strategies under consideration is the reopening of Centrica’s gas storage facilities. Centrica, owner of British Gas, has shown interest in expanding its import and storage capacity for liquefied natural gas (LNG), including the acquisition of Europe’s largest LNG import terminal at Isle of Grain to boost supply resilience.

Another strategy involves extending the operational lives of nuclear power plants. The UK government is evaluating policies to ensure continued low-carbon baseload power from nuclear plants, complementing gas and renewables. However, extending the life of Hinkley Point C nuclear plant, located in Somerset, would not be without cost, according to an EDF insider.

The minister did not specify any official request made to EDF regarding the expansion of Hinkley Point C, nor did he discuss any plans for additional backup strategies for nuclear power in the UK.

The Office for Nuclear Regulation (ONR) will assess the safety case for any expansion of a nuclear power station's operating life. Any expansion to the operating life of a nuclear power station requires a durable safety case created by the operator to show that the plant is secure to compete any extended period.

Apart from nuclear power, the UK imports a third of its natural gas from Norway, with the majority of the gas coming in the form of liquefied gas. The UK also imports liquefied gas from Qatar and the United States. The minister mentioned that most of the UK’s gas comes from Norway, highlighting the potential impact of any disruptions in supplies from this source.

The talks with energy firm Centrica about re-opening a gas storage space center in Yorkshire are part of the backup strategies being considered ahead of winter, due to the war in Ukraine. The minister also stated that interruption to the international gas market will have a "knock-on effect" on the UK.

The government has been in touch with EDF to see what scope is available to prolong the life of Hinkley Point C. The minister did not specify any plans for additional backup strategies for nuclear power in the UK, but emphasized that these backup plans are a "reasonable precautionary procedure" due to the disrupted gas supply from Russia and Ukraine.

In addition to these strategies, the UK government is also investing in large-scale energy storage projects like MESH, which combines natural gas, compressed air, and hydrogen storage powered by offshore wind, to provide reliable low-carbon dispatchable electricity. The government may also be prepared to contribute to re-establishing Centrica’s facility in Yorkshire. These combined approaches aim to reduce reliance on imports from volatile sources, while transitioning the UK towards cleaner, more flexible, and secure energy systems.

[1] BBC News (2022). UK government to consider backup strategies for gas supplies. [online] Available at: https://www.bbc.co.uk/news/business-61933635

[2] Energy Live News (2022). Centrica mulls LNG import terminal acquisition to boost supply resilience. [online] Available at: https://www.energylivenews.com/2022/06/16/centrica-mulls-lng-import-terminal-acquisition-to-boost-supply-resilience/

[3] Carbon Brief (2022). UK’s nuclear fleet could be extended to help meet net-zero goals. [online] Available at: https://www.carbonbrief.org/uk-nuclear-fleet-could-be-extended-to-help-meet-net-zero-goals

[4] Carbon Brief (2022). UK's gas supplies: where does it come from? [online] Available at: https://www.carbonbrief.org/uk-gas-supplies-where-does-it-come-from

[5] GOV.UK (2021). Carbon capture usage and storage (CCUS) in the UK: progress report. [online] Available at: https://www.gov.uk/government/publications/carbon-capture-usage-and-storage-ccus-in-the-uk-progress-report/carbon-capture-usage-and-storage-ccus-in-the-uk-progress-report-2021

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