🎁 💸 Warren Buffett's Top Picks Are Up +49.1%. Copy Them to Your Watchlist – For FreeCopy Portfolio

Gas storage capacity at UK's biggest site may be restored - Centrica

Published 01/04/2016, 17:06
Updated 01/04/2016, 17:10
© Reuters.  Gas storage capacity at UK's biggest site may be restored - Centrica
CNA
-

(Reuters) - Centrica (LON:CNA) Storage Limited (CSL), which operates Britain's largest gas storage site Rough, said on Friday well tests revealed slower-than-expected tubing degradation, potentially indicating that more gas could be stored at the site in future.

The tests are crucial to determining the safe operating capacity of Rough and how much gas can be stored there.

Britain depends in large part on stored reserves to manage winter demand spikes while domestic stockpiles also help ensure security of energy supplies.

In March last year, Centrica imposed reductions on how much gas could be stored at Rough as a safety precaution. It did this be reducing the maximum allowed pressure within the facility to 3,000 pounds per square inch (psi).

"CSL considers that the tests it has conducted so far have not disclosed any defects or degradation that would prevent an eventual return to a maximum permitted operating pressure of 3,500 psi (removing the constraint on Rough's maximum reservoir volume)," it said in a market statement.

However, CSL expects to conduct more testing on secondary well barriers until at least December when it may have sufficient information to allow an increase in well operating pressure back to normal levels.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.