On 12 April 2017, Centrica Storage Limited (“CSL”) announced that it was assessing the future pathway for Rough’s commercial operations.
CSL has now completed the wells testing programme and has analysed the results of this extensive programme. CSL has also completed a review into the feasibility of returning Rough to injection and storage operations and concluded that, as a result of the high operating pressures involved, and the fact that the wells and facilities are at the end of their design life and have suffered a number of different failure modes while testing, CSL cannot safely return the assets and facilities to injection and storage operations.
Furthermore, from a commercial perspective, an assessment of both the economics of seasonal storage today, and the costs of refurbishment or rebuilding the facility and replacing the wells, suggests that both pathways would not be economic.
As a consequence, CSL intends to make all relevant applications to permanently end Rough’s status as a storage facility, and to produce all recoverable cushion gas from the field, which is estimated at 183 bcf.
About Centrica
Centrica is an international energy and services company. Everything we do is focused on satisfying the changing needs of our customers. We supply energy and energy-related services to around 28 million customer accounts mainly in the UK, Ireland and North America, through strong brands such as British Gas, Direct Energy and Bord Gáis Energy supported by around 12,000 engineers and technicians.
Our Energy Marketing & Trading business operates in LNG trading optimisation and risk-management for customers. Centrica is a FTSE 50 company based in Windsor, UK.