Britain has just two days’ worth of natural gas after a decline in energy reserves as more tankers carrying liquefied natural gas (LNG) are diverted from their course to Europe and Asia due to the war with Iran.
Britain had 6,999 gigawatt hours (GWh) of natural gas in storage on Saturday, according to figures from National Gas, which owns and operates the national gas transmission system. This compares to 9,105 GWh the previous year.
Maximum capacity is 12 days of gas, and current storage levels are equivalent to less than two days of reserves, raising concerns that Britain could run out of gas if the crisis in the Middle East escalates further.
However, even when storage stocks are low, 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 time of year and are comparable to this time last year. It is important to remember that storage makes up just a small part of Britain’s diverse gas supply mix. Most of our gas comes from the continental shelf of the UK and Norway, supplemented by LNG, interconnectors with continental Europe and storage.
“Britain benefits from a wide range of supply sources that the market draws on every day. Together, they provide the flexibility needed to balance supply and demand reliably throughout the year.”
At least two oil tankers have been diverted in the mid-Atlantic from Europe to Asia since Friday, according to ship tracking data compiled by Bloomberg. This comes after three similar detours last week.
Gas prices have skyrocketed since the United States and Israel began intense airstrikes against Iran more than a week ago. Iran effectively closed the Strait of Hormuz, through which a fifth of the world’s seaborne gas shipments pass. Qatar halted production at the world’s largest LNG plant last week following a drone attack.
LNG prices in Asia, which imports much of Qatar’s gas exports, soared last week. Monthly UK gas prices rose last week to 137p per therm, up from 78.5p per therm before the war with Iran began.
Gas injections into Britain’s warehouses have increased since February 21 due to milder temperatures, typical when demand falls. Storage levels fluctuate throughout the year and are market-driven, not set by the government.
Continental Europe has several weeks’ worth of gas reserves, but experts say energy systems are different and Britain tends to use storage more flexibly.
While National Gas is not concerned about short-term gas storage levels in salt caverns in Britain, it has proposed a series of policies to safeguard Britain’s future energy security, in response to a government review. They include working with industry to maintain and improve flexible supply. Capacity, including storage, LNG expansion and introduction of floating storage units.
Last month it said systemic change, such as declining North Sea production, increased reliance on imports and changing demand patterns, were creating new challenges and risks. Jon Butterworth, chief executive of National Gas, called it “a watershed moment for Britain’s energy security”.
