Yesterday, the Energy and Utilities Alliance (EUA) announced it has written to newly elected BEIS Select Committee Chair Rachel Reeves MP, calling for clarity regarding the future role of the UK’s gas storage. It’s news announcement can be viewed on its website.
The letter, sent on behalf of the Gas Storage Operators Group, a EUA member, supports the request from the British Ceramic Confederation for a Parliamentary inquiry looking into the impact of the closure of the Rough gas storage facility and any wider gas storage issues to be conducted.
As the owner of two gas storage sites SSE would echo the calls for some clarity on the future role of gas storage and recognition of its importance in the UK energy market.
SSE remains committed to working with UK government departments to ensure the critical role of UK storage in relation to security of supply and stability of gas price is maintained despite the current threats to the viability of the already low storage levels operating in the UK when compared to Europe. SSE has previously stated the economics of the UK’s gas storage sites are challenging and these challenges may only increase.
While the UK’s gas market is liquid, it is now highly reliant on gas delivered from all over the world. The UK has less available gas storage than many neighbouring countries and gas storage facilities can play a vital role in the country’s stability of price and security of supply in the event of gas supply variations.