Centrica Secures License Extension for UK's Largest Gas Storage Facility
Key Ideas
- Centrica Offshore UK granted license extension to operate Rough gas storage site until April 2026, supporting UK's energy security.
- Rough gas storage facility, owned by Centrica Energy Storage+, to potentially become Europe's largest hydrogen storage site with £2 billion investment.
- Centrica aims for Rough to help cut energy costs by £1 billion yearly by 2050 through conversion to hydrogen storage, pending regulatory agreement with UK Government.
- Despite potential future losses, Centrica sees Rough as a crucial asset for the UK's energy system and plans to update on its future in the coming months.
Centrica Offshore UK has been granted an extension of its license to operate the Rough gas storage site in the Southern North Sea until April 30, 2026. The North Sea Transition Authority (NSTA) believes this extension will enhance the UK's energy security. Centrica Energy Storage+ (CES+) owns and operates Rough, the UK's largest gas storage facility, with a capacity of 54 billion cubic feet. Plans are underway to potentially make Rough hydrogen-ready in the next decade. Centrica is in discussions with the UK Government to agree on a regulatory model for a £2 billion investment to redevelop Rough into Europe's largest hydrogen storage facility. The company sees Rough as pivotal in supporting a sustainable energy transition and aims to reduce energy costs by £1 billion annually by 2050 through hydrogen conversion. Despite projected losses in 2025, Centrica highlights Rough's importance for energy security and the hydrogen economy. The company is preparing to update on Rough's future while emphasizing the need for a regulatory framework to support investment. Recent milestones include a record fill level in November 2024 and a sales agreement with Petrobras for LNG purchase from 2027.