The UK needs to ensure that whatever gas replaces that from Rough comes from sources that can deliver the same high levels of environmental and regulatory standards.” Ken Cronin, the chief executive of the onshore gas and oil industry trade body UKOOG, said: “The solution for the UK in the medium term cannot be to transport gas across oceans and continents. The fracking industry said the closure would increase the UK’s reliance on Qatari LNG imports, which it said had proved to be politically risky, although there is no evidence yet that the diplomatic crisis engulfing the Gulf state, whose neighbours have severed diplomatic ties, has interrupted UK supplies. “Though we haven’t seen a material impact on prices yet – most probably because there is still a significant amount of recoverable gas in the field, which could last for years – the pressure could come in the winter months, especially if we experience very cold conditions.”

Matt Osborne, a risk manager at energy consultancy Inenco, said: “We anticipate that the decision to close Rough will create uncertainty in terms of energy pricing. Rebuilding or refurbishing Rough would not be economical, the firm added, though the cost of closure is expected to be broadly neutral because of the value of the remaining gas.Įxperts said it was no surprise Centrica had decided to shutter the depot, because liquefied natural gas (LNG) imports from Qatar had significantly reduced the economic rationale for this kind of facility.Īnalysts at Barclays said the closure would increase the volatility of winter gas prices, a view shared by other industry-watchers.

The company said tests of the wells at the facility showed it had come to the end of its design life. Centrica said Rough, which opened in 1985 and could hold about nine days’ gas supply, will cease to be a storage facility once its remaining gas reserves have been sold over the next four to five years.

Shut in 2017