UK Ministers Worry Gas Shortages Will Bite This Winter

The UK government has finally acknowledged the risks of gas supply shortages in Britain. The energy system operator's November report warned of an emerging risk to gas supplies at the turn of the decade if a key piece of infrastructure were offline during a cold snap.

The government's formal response, while only an interim version, indicates they think it will probably have to intervene to ensure sufficient gas capacity and infrastructure is in place. This could mean contracts for more storage, import terminals, or other measures.

With 24m households relying on gas for heating, and annual consumption still high despite a decline, ministers need to hurry up and decide what kit is needed and by when. The £2bn project to regenerate Centrica's Rough storage site off the coast of Yorkshire won't happen overnight, nor could alternative solutions.

The report also highlights near-term challenges, such as disruption to global LNG supplies, which has led to lower-than-average continental European storage and rising wholesale gas prices.