Centrica Urges Support to Keep Major UK Gas Storage Site Open
Centrica CEO Chris O'Shea has issued a stark warning over the future of the Rough gas storage facility, the UK’s largest, located off the coast of East Yorkshire. In a recent interview, O'Shea said the site could face closure without government backing — a move that would carry major risks for both energy security and the country’s transition to green energy.
The Importance of Rough in the UK's Energy Mix
Rough accounts for around half of the UK’s gas storage capacity. It plays a critical role in balancing supply and demand, particularly during winter, by storing gas when supply is high and releasing it during periods of shortage. This helps stabilise prices and ensures reliability during times of peak demand.
O'Shea revealed the facility is expected to lose about £100 million this year. Centrica is prepared to invest £2 billion in redeveloping Rough — boosting its capacity to store not only natural gas but also hydrogen, in line with the UK’s net-zero goals.
Government's Stance and the Need for Regulatory Support
The government has said the future of Rough is a commercial matter for Centrica, though it is open to discussions. O'Shea is urging ministers to adopt a “cap and floor” regulatory model — similar to those used in other energy sectors — that would offer a predictable investment framework without the need for direct subsidies.
He argues this model could unlock the necessary funding, enabling Rough to support energy security while aligning with climate targets. Without such support, the UK could be left more exposed to supply disruptions and global price shocks.
The Role of Gas Storage in Green Energy Transition
Storage facilities like Rough are vital to the energy transition. They provide the flexibility needed to integrate intermittent renewable energy sources into the grid. With added hydrogen capability, Rough could also support the development of a low-carbon hydrogen economy.
O'Shea envisions Rough becoming the world’s largest gas storage facility, with capacity for up to 200 billion cubic feet of gas, including hydrogen. The redevelopment could also create up to 5,000 jobs and position the UK as a global leader in green energy infrastructure.
Path Forward
The future of the Rough facility remains uncertain, but its strategic value is clear. As Centrica weighs a multi-billion-pound investment, the outcome will depend on whether government and industry can agree on a model that shares risk while delivering public value. With long-term energy goals focused on security, affordability, and decarbonisation, Rough could become a cornerstone of a cleaner, more resilient UK energy system — if the right policy support is in place.