Climate Changed
Traders Brace for First Winter Without U.K.'s Big Gas Store
- Rough closure boosts foreign suppliers, spot price volatility
- LNG, Russia, Norway seen filling gaps in winter supply
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For the first time in more than three decades, natural gas traders, utilities and producers are preparing for a winter without the U.K.’s biggest storage facility.
With Centrica Plc’s North Sea Rough storage site almost empty after wells deteriorated, the U.K. is set to lose a quarter of its daily supply capacity during the winter as well as its ability to quickly respond to short-term swings in demand. Britain will import more fuel, which may be costly and create opportunities for traders and producers, as well as boost business for smaller storage sites.