Gas Storage Levels

Andrew Bowie Excerpts

Monday 13th January 2025 Commons Chamber

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

(Urgent Question): To ask the Secretary of State for Energy Security and Net Zero if he will make a statement on gas storage levels.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)]

Energy security is a key priority for this Government, and at no time was there any concern about Britain’s energy system being able to meet demand. Our systems worked entirely as intended. We had capacity to deal with market constraints, and that has been backed up by the two authoritative voices on this issue in the country—National Gas, which runs the gas network, and the National Energy System Operator.

We have sufficient gas supply and electricity capacity to meet demand this winter, due to our diverse and resilient system. While storage is an important flexibility tool in the gas system, our varied sources of gas supply mean that the UK is less reliant on storage than some other European countries that have a more limited supply options. Our diverse options include the UK continental shelf, our long-term energy partner Norway, international markets via the second largest liquefied natural gas onshoring capacity in Europe, and two interconnectors.

Gas storage is used throughout the year, but typically operates in winter to help meet peaks in demand. Through colder spells, storage levels are expected to fluctuate across the winter period. That is what happened last week following the severe cold weather, and it is a sign that the gas and storage markets are working exactly as they should. That is precisely why we have those systems in place. In their winter outlooks, National Gas and the National Energy System Operator assessed that there is sufficient supply to meet winter demand, including the role of storage. On Friday, National Gas, the owner and operator of Britain’s gas networks, confirmed that

“the overall picture across Great Britain’s eight gas storage sites remains healthy.”

We will continue to work closely with National Gas, NESO and storage operators to maintain continued security of supply. I reiterate: Britain’s energy system is working to continue to meet the demand of consumers across the country.

[Andrew Bowie]

All our constituents will be aware of the freezing temperatures experienced across the United Kingdom last week, dipping to minus 18° in the north of Scotland. However, many will not be aware of just how close this country came to an energy shortage, blackouts, or demand control—closer than at any point in the past 15 years. On Friday Centrica, the owner of British Gas, issued a stark warning that freezing weather and a spike in demand had reduced our gas storage to “concerningly low” levels—26% lower than this time last year. At a time when temperatures dropped below freezing for an extended period of time, our stores were set to last for less than a week.

Earlier in the week the National Energy System Operator issued a call for electricity providers to step in to provide extra electricity to meet demand and limit the risk of blackouts, paying 10 times the average daily amount to keep the lights on, all of which will end up on the energy bills of our constituents. With an incredibly tight margin between demand and available power generation, we were once again forced to rely on reliable gas power plants to keep the lights on in this country, showing that gas is and will be a vital component of our energy security for decades to come.

With their rush to meet the Secretary of State’s ideological target to decarbonise the entire electricity grid by 2030, this Government are playing fast and loose with our ability to keep the lights on. They are rushing headlong into a renewable energy dominated system—a Chinese renewable energy dominated system—but Ministers cannot escape the fact that when the wind does not blow and the sun does not shine, wind turbines and solar panels will not keep the lights on in Britain. We should be in no doubt that this Government’s ideological plans for our energy supply will leave the UK dependent on foreign imports, send bills soaring, and leave us teetering on the brink of blackouts.

Interestingly, when Labour was last in government in 2010, the Secretary of State whipped his then Ministers to vote against Conservative proposals to increase gas storage capacity in the United Kingdom, with a Labour MP on the Energy Bill Committee saying that

“the climate of this country, other than in the past month, is usually such that we do not quite need the same storage facilities as other countries in mainland Europe?”––[Official Report, Energy Public Bill Committee, 19 January 2010; c. 282.]

Does the Minister think the Secretary of State regrets not backing that proposal in 2010? Does he accept that the push towards renewables will lead to higher levels of intermittency, and does he accept that we will need to urgently review our gas storage capacity in the immediate future?

[Michael Shanks]

The shadow Minister’s point would be well made were it not for the fact that it is completely untrue. If we look at the facts, the capacity market notice that he mentions was cancelled—