Industry NewsThe depletion of the UKs largest natural gas store risks higher prices should colder-than-average weather persist for the rest of the winter.
Stockpiles in CentricaPlcs Rough, a depleted field under the North Sea thats used for storage, are 24 percent less than a year ago and 49 percent less than the same point in 2007. Rough can only pump gas at its average rate for another 25 days before withdrawals must halt and stocks be replenished, National Grid Plc data show.
The UK gas market could well be running without one of its primary safety nets, Craig Lowrey, head of energy markets at UK-based consultants EIC, said by phone. You do run the risk of spikes.
The UK can store only 5 percent of its annual gas demand, compared with France's 18 percent and Germany's 20 percent, according to Centrica. The coldest winter since 1997 has seen demand for the heating fuel reach a six-year high.
The failure of a compressor on a gas pipeline from the Netherlands yesterday may cut imports and put further pressure on stored supplies.
UK natural gas prices peaked this year at 76 pence a therm during the Russia-Ukraine dispute that cut pipeline supplies to Europe last month, according to broker ICAP Plc. Gas for same-day delivery declined 1.5 pence, or 2.4 percent, to 60.75 pence a therm yesterday.