Take Centrica’s gas storage warning seriously – Britain still needs secure supplies | Nils Pratley

Centrica has warned it will close Britain’s largest gas storage site, Rough, next April without a long-term government support deal for a proposed £2bn expansion. The warning matters because official modelling has identified a risk of gas shortages around 2030 if major import infrastructure fails during a severe cold spell, leaving the new energy secretary to decide how to strengthen supply security.

Rough can store large volumes but currently releases gas relatively slowly, so the government may judge other options more effective, including salt caverns, greater interconnector capacity or additional liquefied natural gas terminals. Centrica says the site’s volatile profitability cannot justify major investment without regulated returns; Rough made a £57m top-line profit in the latest half-year but lost nearly as much last year. Declining North Sea output also increases the importance of decisions on projects such as Jackdaw, which could provide 6% of domestic production.