Page 9 - EurOil Week 31 2022
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EurOil                                PIPELINES & TRANSPORT                                           EurOil




















































       Ofgem grants third-party access



       exemption for Rough gas facility






        UK               UK energy regulator Ofgem has approved  storage capacity for the winter for 2022/2023
                         Centrica’s request for a time-limited exemp-  and 59 bcf [1.59bn cubic metres] for the winter
       Rough was closed   tion from negotiated third-party access rules,  of 2023/2024,” Ofgem said. “We consider that
       in 2018, leaving the   to fast-track the restoration of the Rough stor-  this provides a significant increase in gas storage
       country significantly   age facility ahead of winter, the regulator said  capacity for the UK for the next two winters and,
       low on storage capacity   on August 3.                 consequently, promotes security of supply.”
       for gas.            Rough, the UK’s largest gas storage facility,   The exemption to third-party access rules will
                         was closed in 2017 after the government at the  remain in force until June 30, 2024. This would
                         time refused to grant it additional subsidies,  enable Rough to reopen quickly, but provide the
                         leaving the country significantly low on storage  usual amount of time for third-party access rules
                         capacity for a gas market of its size. But with gas  to be negotiated, “providing security of supply
                         supply shortages looming in Europe, amid ongo-  for the coming winter and benefiting UK con-
                         ing reductions in Russian flow, the government  sumers,” Ofgem said.
                         has entered into talks with Centrica to reopen   The regulator said it did not undertake con-
                         the facility for the upcoming winter heating  sultations because of the urgent need to reopen
                         season. But Centrica said on July 28 it needed a  the facility.
                         “regulated return model” to support a GBP2bn   “The exemption is for a relatively short period
                         ($2.4bn) investment in reopening the site.  of time, less than two years, so we consider that
                           “Allowing gas storage operations at Rough  it is likely there would be no adverse impacts on
                         will provide approximately an additional  third parties and, if there were any impacts, these
                         28bn cubic feet [793mn cubic metres] of gas  would be limited,” Ofgem said. ™



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