Mr O’Shea, who leads the owner of British Gas, said low storage levels represent a national security concern. According to his LinkedIn post, the UK has relied for too long on other countries for energy security while underinvesting in gas storage and gas-fired power generation.
The warning comes as European gas markets face higher prices and lower reserves following disruption linked to the Iran war. According to The Telegraph, UK gas storage sites were around 30 per cent full in late August, compared with 46 per cent at the same point the previous year.
Centrica Calls for Redevelopment of the Rough Gas Storage Facility
Mr O’Shea has called for government support to allow Centrica to redevelop the ageing Rough gas storage facility, an offshore site that accounts for around half of Britain’s gas storage capacity. The company said it is prepared to invest £2 billion of shareholders’ money into the project if the right regulatory framework is put in place.
“The time is now upon us where we need to fix this,” Mr O’Shea said, adding that “time is rapidly running out” for the redevelopment plans. According to The Independent, Centrica has argued that the project could strengthen the UK’s ability to store gas ahead of periods of high demand.
The Rough facility has been maintained despite its age, with The Sun reporting that Centrica is losing around £10 million a month while keeping the site operational. The company has proposed a financing system based on a “cap-and-floor” model, which would provide support through a levy on consumer bills.
The government said the future of Rough remains a commercial decision for Centrica but confirmed it is willing to discuss proposals for gas storage sites. A spokesperson said the UK has a diverse energy mix and remains confident in the security of supply.
Gas Dependence and Concerns Over Imported Energy
The UK stores only a small proportion of its annual gas demand and relies heavily on imports from overseas suppliers. According to The Independent, natural gas makes up around a third of the UK’s overall energy mix, with less than half of that supply coming from domestic production.
Norway remains a major supplier of gas to Britain and Europe, but concerns have emerged over whether European countries can continue relying on external sources at the same level. According to The Telegraph, Norway’s energy minister Terje Aasland said European nations need to strengthen their own power supplies rather than depend on Norway alone.
Gas has also played a significant role in electricity generation during periods when renewable output was lower. Figures cited by The Sun show that gas power stations supplied a large share of electricity during several windless periods over the summer, including a peak of 50 per cent on 30 June.
The government has maintained that the country’s combination of domestic production, Norwegian pipelines, European interconnectors and liquefied natural gas terminals provides a secure supply system. The debate over storage levels and the future of Rough is expected to continue as winter approaches.
