Due to the extension of an outage at the Rough gas storage site we’ve seen British wholesales gas prices rise this morning. The outage has been extended due to further uncertainty regarding untested well at the site and no injection or withdrawal will occur during this period. Further wells are scheduled to be tested, with an estimated completion of March / April 2017.
The news sent winter UK gas prices up on concerns Britain would go into winter with record-low storage levels.
Ed Cox, head of gas at price reporting firm Icis, said: “The extended outage could remove an important source of UK gas supply for the entire coming winter which is the period of peak demand. The UK may need to import more pipeline gas to cover the shortfall with the result that the UK wholesale price trades at a premium to neighbouring northwest European markets.”
Centrica has been conducting safety checks on its Rough wells at the North Sea site since March 2015 and notified the market late last month that it had “identified an additional issue on one of the wells tested”.
In its latest update the company said it has found some potential uncertainties in the remaining untested wells that require further testing.
We’ll be on hand to assist with any queries you may have regarding the announcement and, as always, your account manager will be more than happy to assist in any way possible.