Cold Snap Triggering Gas Crisis in U.K. Shows Rising Supply Risk
- Market less flexible to absorb shocks than in previous years
- Lack of storage capacity, Brexit signal volatile prices
This article is for subscribers only.
The cold snap rattling energy markets across Europe has revealed Britain’s vulnerability to natural gas shortages driven by a lack of capacity to store the fuel.
At the moment when the U.K. most needed a supply cushion to smooth out a surge in demand for gas and power, Centrica Plc announced a 12-hour outage at its Rough gas storage facility under the North Sea. Gas prices for immediate delivery more than doubled to their highest in almost a decade as an Arctic chill and heavy snow drove up demand for heat and electricity.