Over the last decade, the UK has significantly reduced its gas storage capacity, leaving the country more exposed to price volatility and energy security risks. This reduction is a direct consequence of the 2017 closure of Rough, the UK’s largest gas storage facility, which previously accounted for around 70% of the nations’ storage capacity. The decision to shut Rough was driven by high maintenance costs and declining profitability, but its absence has left a lasting impact on the energy market.
Gas storage plays a vital role in energy security by providing a buffer during periods of high demand or supply disruptions. Without sufficient storage, the UK must rely heavily on daily imports of gas from international markets, leaving it vulnerable to global price spikes and geopolitical events. For example, during the winter months, when demand peaks, the lack of storage forces the UK to compete with other countries for limited gas supplies, driving up prices.
The importance of storage became especially clear during the European energy crisis of 2021-2022, triggered by low global gas supplies and heightened tensions with Russia. While countries like Germany and France, with robust storage infrastructure, could draw on reserves, the UK faced sharper price spikes due to its ‘just-in-time’ reliance on imports.
The reduced storage capacity has also increased price volatility. Without the ability to stockpile gas when prices are low, the UK cannot hedge against sudden market fluctuations. Businesses and households alike have felt the impact through higher energy bills.
To address this challenge, there have been calls to expand UK gas storage, such as reopening and upgrading facilities like Rough. However, long-term energy security will also depend on accelerating the transition to renewable energy and improving grid flexibility to reduce reliance on gas altogether.