Why Do We Need More of It?
Today (04/03/2013), we have just witnessed U.K. natural gas for within-day delivery jump to the highest level since March 2006 as Norway cut supplies following a power failure at its Ormen Lange gas field in the North Sea.
The UK is in immediate need of increased gas storage facilities in order to cope with sudden demands in supply during either above average cold spells or supply technicalities etc. The UK’s long-range gas storage facility, Rough, will be empty by March 17 if it continues at full capacity rates, which has caused recent concerns in the market and driven up prices.
The Future
Storage facilities are vital for both energy security and economic importance. Where France and Germany have 99 and 122 days of storage capacity respectively, the UK has a mere 14 days leaving it perilously exposed.
The Gateway Storage Company Ltd planned to build an underground natural gas storage facility in the East Irish Sea, approximately 25 km (15 miles) offshore, south west of Barrow-in-Furness. When completed, the caverns will have a working gas storage capacity of 1.52 billion standard cubic metres, adding nearly 30% to the current UK gas storage capacity. However with the recession, investors have proven hard to come by, causing further delays to construction.
