UK Decides Against Subsidies to Boost Gas Storage

British ministers decided on Wednesday not to boost gas storage capacity, saying that supplies are large enough and the system does not require a £750 million investment over 10 years. 

Ministers made their decisions based on independent analysis commissioned by the Government.  Reports claim that the UK energy market functions well.

“Security of supply can be delivered more cheaply by the market … It is up to industry to get on and invest in building gas storage,” Energy Minister Michael Fellon said in a note.

The decision comes despite warnings by industry. Britain is the top European gas consumer and its storage represents a low percentage of the total demand. Last winter, the UK was close to depletion in occasion of the prolonged cold.

“The UK has capacity to deliver twice the amount of gas required in a normal winter, and has coped well with extreme winter conditions, such as the extended cold snap this March, and the coldest December since records began in 2010,” responded Fellon.