Latest news with #gasstorage
Reuters
5 days ago
- Business
- Reuters
Germany' SEFE allocates 3 TWh of auction volume into Rehden gas storage
FRANKFURT, Aug 6 (Reuters) - German gas company SEFE said on Wednesday it had allocated three terawatt hours (TWh) of natural gas storage space at its northern German Rehden facility, the entire working gas volume it had offered at an auction. "SEFE Storage has allocated the storage capacity of approximately 3 TWh for the remainder of the storage year 2025/2026 in underground storage Rehden on the PRISMA capacity platform," the company said in a statement. Wholesale energy traders are keen to learn whether or not gas reserve-building continues in Germany at sufficient levels ahead of the coming winter, as it is Europe's leading storage location. German storage units at the beginning of this week were 62.5% full, compared with 90% a year ago, internet data from European operator group GIE showed. Of Germany's technically possible gas storage capacity of 248 TWh, Rehden accounts for 45 TWh, and is therefore a useful pointer to the overall picture of stockpiling. SEFE - or Securing Energy for Europe - prior to the auction recorded a volume of 5.5 TWh at Rehden, a filling level of 12%. Rehden has a November 1 filling target of 45% under German energy security provisions. As a so-called porous storage, it takes relatively longer to fill than cavern storage facilities, which represent the bulk of German capacity. On PRISMA, the names of bidders or the size of their allocations are not identified.
Zawya
5 days ago
- Business
- Zawya
Jordan: Energy minister, Egyptian counterpart tour ‘Energos Force' LNG vessel in Aqaba
AMMAN — Minister of Energy and Mineral Resources Saleh Kharabsheh and Egyptian Minister of Petroleum and Mineral Resources Karim Badawi on Monday toured the floating storage and regasification unit (FSRU) Energos Force at the Sheikh Sabah Liquefied Natural Gas (LNG) Terminal in Aqaba. The vessel, chartered by the Egyptian Natural Gas Holding Company (EGAS), arrived last Friday as part of a joint Jordanian-Egyptian initiative to bolster regional energy cooperation. The visit aimed to follow up on the vessel's operational preparations ahead of its planned connection to the Arab Gas Pipeline in the coming days. A second vessel carrying LNG for operational testing is scheduled to arrive on Wednesday to begin regasification procedures, according to a ministry statement. Speaking during the visit, Kharabsheh said Energos Force has a storage capacity of 3.6 billion cubic feet and a daily regasification capacity of 750 million cubic feet. He noted that the ship's docking at the Aqaba terminal, owned by Aqaba Development Corporation and leased by the National Electric Power Company (NEPCO), was part of an agreement allowing EGAS to utilise Jordan's LNG infrastructure. 'This move strengthens the Kingdom's energy security and enhances the flexibility of the national energy system,' Kharabsheh said, highlighting the importance of diversifying gas supply sources and ensuring readiness during peak demand or emergencies. Badawi emphasised that the vessel's arrival reflects the strategic energy partnership between Jordan and Egypt, as well as their shared commitment to securing gas supplies in times of need. The deployment of Energos Force marks a key milestone in implementing the bilateral energy cooperation agreement signed between Amman and Cairo in January 2024, the statement said. The agreement allowed Egypt to utilise the Aqaba terminal for regasification purposes, under a flexible arrangement that imposes no fixed costs when the facility is idle, a measure both sides say improves efficiency and reduces operational expenditures, the statement read. Officials said the initiative serves as a model for Arab cooperation in the energy sector, enabling both countries to make the most of existing infrastructure in response to global energy challenges. The Ministry of Energy and Mineral Resources also reiterated its commitment to expanding Jordan's gas infrastructure, including plans to build a land-based regasification facility at Sheikh Sabah Port. The long-term project aims to ensure a steady gas supply for the electricity and industrial sectors, particularly during periods of high demand or crisis. © Copyright The Jordan Times. All rights reserved. Provided by SyndiGate Media Inc. (
Reuters
5 days ago
- Business
- Reuters
Germany to scrap gas storage levy
BERLIN, Aug 6 (Reuters) - Germany's cabinet approved a draft bill on Wednesday to scrap a gas storage levy for all consumers in an effort to bring down energy costs. After decades of relying on cheap Russian gas, Europe's largest economy is grappling with high energy costs which are straining its export-driven, energy-intensive industries such as chemicals and metals production. The levy was introduced in 2022 to help cover the high expense of replacing Russian gas after Moscow cut supplies. While it was originally meant to be shared more broadly, pressure from Germany's neighbours led Berlin to impose the charge solely on German consumers. According to government estimates, abolishing the levy will provide roughly 3.4 billion euros ($3.93 billion)in relief to end customers, saving an average four-person household between 30 euros and 60 euros per year. ($1 = 0.8655 euros)
Yahoo
19-07-2025
- Business
- Yahoo
Britain's gas storage site threatened with closure this winter
Britain's largest gas storage site risks closure by the end of the year unless the Government steps in to provide financial support. Centrica, which owns the Rough storage facility, has warned of the potential shutdown this winter as it battles steep losses at the site. Rough represents half of Britain's gas storage capacity and its closure would be a significant blow to the resilience of the country's energy system. The UK remains reliant on gas to help back up intermittent wind and solar, particularly over winter. Chris O'Shea, the chief executive of Centrica, which owns British Gas, warned the storage site was expected to lose £100m this year and said: 'We can't sustain that.' He told The Telegraph. 'I would be willing to close it. My job is clear. It is to grow the company, grow jobs, grow profits, and I take that seriously. 'We've made money over the past couple of years. But we're now pouring £100m into this asset that we could invest in other things.' Centrica aims to redevelop the 40-year-old site to be able to store hydrogen alongside natural gas. However, Mr O'Shea said: 'The market at the moment is not giving the right signals to invest in storage.' The company has asked ministers for a so-called cap-and-floor mechanism to help fund the £2bn project. While Centrica would provide the investment up front, the mechanism would effectively mean guaranteed funding underwritten by a levy on consumer bills. 'I want a mechanism that encourages investment in Rough,' Mr O'Shea said. 'We have seen it in nuclear, but let's extend that to other assets that are needed to bring energy resilience.' Mr O'Shea said he had been encouraged by recent talks with the Government. He praised Rachel Reeves and Ed Miliband for highlighting the importance of gas storage as part of the Government's industrial strategy. However, the call for state support comes at a delicate time for Labour. Ms Reeves's Budget has been left in tatters by a series of policy about-turns and poor economic data, forcing her to find billions rather than consider further spending. Meanwhile, Mr Miliband is under pressure to demonstrate progress towards meeting his promise of lowering energy bills by £300 this parliament. It suggests the Energy Secretary may be wary of signing off on a measure that add more levies on to bills. Mr O'Shea warned the issue of support for Rough was urgent and could not be put off. He said: 'I think we've got to see something [from the Government] probably this year. If we get towards the end of the year and we've got a situation whereby we've got no prospect of making a profit, then we're just throwing good money after bad. 'It would be like a charitable donation and that's not our business. If we were to do that, then the shareholders would act quite quickly.' 'No one likes a freeloader' Centrica has already stopped filling the facility off the Yorkshire coast amid concerns about the site's financial viability. Mr O'Shea said Government intervention was key to safeguarding Britain's energy security. He said: 'If Rough closes, then the UK has just six days of gas storage available, compared to 100 in France, Netherlands and Germany. 'If we get into a crisis and the UK hasn't invested in gas storage, then I am not sure it will flow from the Continent. 'Politically, if you're the prime minister of France, Germany, and you look at a country that hasn't invested in gas storage, then I am not sure that will work. There is a need for us to recognise the risk that no one likes a freeloader.' The potential closure of Rough risks reviving concerns over Britain's strained energy supplies, particularly as the country moves to a system more reliant on intermittent renewables. Gas power stations remain crucial for backstopping Britain's energy system when wind and solar generation fall short, something that happens during so-called 'dunkelflaute' periods of low wind and limited light that occur over winter. 'We have had pretty warm winters in the past couple of years, and that has helped us,' said Mr O'Shea. 'If we'd had cold winters, then we would have struggled. Would you feel comfortable driving in the red zone in the revs all the time? I don't feel comfortable with an energy system that has such a small margin for error.' The closure of Rough would lead to the potential loss of hundreds of jobs at the site. A Government spokesman said: 'The future of Rough storage is a commercial decision for Centrica, but we remain open to discussing proposals on all gas storage sites, as long as it provides value for money for taxpayers.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
19-07-2025
- Business
- Telegraph
Britain's gas storage site threatened with closure this winter
Britain's largest gas storage site risks closure by the end of the year unless the Government steps in to provide financial support. Centrica, which owns the Rough storage facility, has warned of the potential shutdown this winter as it battles steep losses at the site. Rough represents half of Britain's gas storage capacity and its closure would be a significant blow to the resilience of the country's energy system. The UK remains reliant on gas to help back up intermittent wind and solar, particularly over winter. Chris O'Shea, the chief executive of Centrica, which owns British Gas, warned the storage site was expected to lose £100m this year and said: 'We can't sustain that.' He told The Telegraph. 'I would be willing to close it. My job is clear. It is to grow the company, grow jobs, grow profits, and I take that seriously. 'We've made money over the past couple of years. But we're now pouring £100m into this asset that we could invest in other things.' Centrica aims to redevelop the 40-year-old site to be able to store hydrogen alongside natural gas. However, Mr O'Shea said: 'The market at the moment is not giving the right signals to invest in storage.' The company has asked ministers for a so-called cap-and-floor mechanism to help fund the £2bn project. While Centrica would provide the investment up front, the mechanism would effectively mean guaranteed funding underwritten by a levy on consumer bills. 'I want a mechanism that encourages investment in Rough,' Mr O'Shea said. 'We have seen it in nuclear, but let's extend that to other assets that are needed to bring energy resilience.' Mr O'Shea said he had been encouraged by recent talks with the Government. He praised Rachel Reeves and Ed Miliband for highlighting the importance of gas storage as part of the Government's industrial strategy. However, the call for state support comes at a delicate time for Labour. Ms Reeves's Budget has been left in tatters by a series of policy about-turns and poor economic data, forcing her to find billions rather than consider further spending. Meanwhile, Mr Miliband is under pressure to demonstrate progress towards meeting his promise of lowering energy bills by £300 this parliament. It suggests the Energy Secretary may be wary of signing off on a measure that add more levies on to bills. Mr O'Shea warned the issue of support for Rough was urgent and could not be put off. He said: 'I think we've got to see something [from the Government] probably this year. If we get towards the end of the year and we've got a situation whereby we've got no prospect of making a profit, then we're just throwing good money after bad. 'It would be like a charitable donation and that's not our business. If we were to do that, then the shareholders would act quite quickly.' 'No one likes a freeloader' Centrica has already stopped filling the facility off the Yorkshire coast amid concerns about the site's financial viability. Mr O'Shea said Government intervention was key to safeguarding Britain's energy security. He said: 'If Rough closes, then the UK has just six days of gas storage available, compared to 100 in France, Netherlands and Germany. 'If we get into a crisis and the UK hasn't invested in gas storage, then I am not sure it will flow from the Continent. 'Politically, if you're the prime minister of France, Germany, and you look at a country that hasn't invested in gas storage, then I am not sure that will work. There is a need for us to recognise the risk that no one likes a freeloader.' The potential closure of Rough risks reviving concerns over Britain's strained energy supplies, particularly as the country moves to a system more reliant on intermittent renewables. Gas power stations remain crucial for backstopping Britain's energy system when wind and solar generation fall short, something that happens during so-called 'dunkelflaute' periods of low wind and limited light that occur over winter. 'We have had pretty warm winters in the past couple of years, and that has helped us,' said Mr O'Shea. 'If we'd had cold winters, then we would have struggled. Would you feel comfortable driving in the red zone in the revs all the time? I don't feel comfortable with an energy system that has such a small margin for error.' The closure of Rough would lead to the potential loss of hundreds of jobs at the site. A Government spokesman said: 'The future of Rough storage is a commercial decision for Centrica, but we remain open to discussing proposals on all gas storage sites, as long as it provides value for money for taxpayers.'
