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Great Britain has only two days of fossil gas stored after a decline in energy reserves, as more tankers carrying liquefied natural gas (LNG) are diverted from their course to Europe towards Asia because of the Iran war.
Great Britain had 6,999 gigawatt hours (GWh) of fossil gas stored on Saturday, according to figures from National Gas, which owns and operates the gas national transmission system. This compares with 9,105 GWh a year earlier.
Maximum capacity is 12 days of gas, and current storage levels equate to under two days of reserves, leading to concerns that Great Britain could run out of gas if the crisis in the Middle East escalates further.
However, even when storage stocks are low, Great Britain continues to receive large volumes of gas from other sources, National Gas said.
A National Gas spokesperson said: “Britain’s gas storage levels are broadly in line with what we would expect at this point in the year and are comparable to this time last year. It’s important to remember that storage makes up only a small part of Britain’s diverse gas supply mix. Most of our gas comes from the UK continental shelf and Norway, complemented by LNG, interconnectors with continental Europe, and storage.
“Great Britain benefits from a wide range of supply sources that the market draws on every day. Together, these provide the flexibility needed to balance supply and demand reliably throughout the year.”
A spokesperson for the Department for Energy Security and Net Zero said: “It is categorically untrue that the UK only has access to two days of gas supply. We have a diverse energy mix and are confident in our security of supply.
“Gas will continue to play a key role in our diverse and resilient energy system as we transition to more secure, clean homegrown energy. We are working with industry to ensure the gas system is fit for the future, including maintaining security of supply in the rarest scenarios.”
At least two tankers have redirected in the middle of the Atlantic from Europe to Asia since Friday, according to ship-tracking data compiled by Bloomberg. This comes after three similar diversions last week.
Gas prices have soared since the US and Israel began intense airstrikes on Iran over a week ago. Iran in effect closed the strait of Hormuz, through which a fifth of global seaborne gas shipments pass. Qatar halted production at the world’s biggest LNG plant last week after a drone attack.
LNG prices in Asia, which imports much of Qatar’s gas exports, soared last week. UK month-ahead gas prices rose last week to 137p a therm, up from 78.5p a therm before the Iran war began.
Gas injections into Great Britain’s storage have picked up since 21 February because of milder temperatures, which is typical when demand drops. Storage levels fluctuate over the course of the year and are market-driven, not set by the government.
Mainland Europe has reserves of several weeks’ worth of gas, but experts say that energy systems are different, and Great Britain tends to use storage more flexibly.
While National Gas is not concerned about Great Britain’s short-term gas storage levels in salt caverns, it has proposed a range of policies to safeguard Britain’s future energy security, in response to a government review. They include working with industry to maintain and enhance flexible supply capacity, including storage, LNG expansion and the introduction of floating storage units.
It said last month that systemic change, such as declining North Sea production, increased reliance on imports and shifting demand patterns, was creating new challenges and risks. Jon Butterworth, the National Gas chief executive, called it a “defining moment for Britain’s energy security”.
