UK Faces Winter Gas Shortages as Prices Hit One-Year High — British Gas CEO Issues Warning

The chief executive of British Gas has warned that the UK could face gas shortages this winter as storage levels run unusually low and global supply risks push prices higher.

What Mr O'Shea Says

Chris O'Shea, CEO of Centrica (owner of British Gas), cautioned that the country is vulnerable because of a shortage of gas storage capacity. He urged ministers to consider support for the Rough offshore storage facility, which Centrica says costs about £10m a month to maintain.

"European gas storage levels are low. UK gas storage levels are incredibly low ... If it's not a warm winter, then there'll be problems, and the problems will be associated with having less gas in storage."

Supply, Prices and Geopolitics

Gas prices in Europe recently climbed to their highest level in a year, topping about €62 per megawatt hour, while crude oil has approached $100 a barrel amid renewed tensions in the Middle East. Attacks and disruptions around the Strait of Hormuz and the Red Sea — including incidents involving tankers and mined routes — have heightened concerns about the security of energy shipping lanes.

Storage Levels and Risks

Official data show the UK currently holds under a week's worth of gas in storage. Storage typically falls through the summer because demand is only around 25%–30% of peak winter use, but this year's levels are lower than a year ago. Last July there were roughly 8,600 GWh in storage; that figure has fallen by about one third to just under 5,700 GWh today, equivalent to approximately five to six days of summertime demand.

Earlier this year, following a spike in regional tensions, National Gas reported stored volumes plunged from about 18,000 GWh to 6,700 GWh — a sharp drop that briefly left the system with very limited reserves. Ministers have stressed the UK continues to receive a steady flow of imports and that stored gas is intended primarily as an emergency buffer.

Rough Storage And Policy Choices

Centrica says keeping Rough operational is costly but important for national resilience. Mr O'Shea warned that the planned shutdown of Rough later this year further increases the risk of shortages if the UK experiences a cold winter. He described storage as an "insurance policy" against both interruptions to imports and sharp price spikes.

"If Rough is not filled, it's arguable that you haven't done everything that you possibly could ... If it [a cold winter] comes to pass and we don't have enough energy, then we'll have a long time to think about what we could have done," he said.

Outlook

Restoring storage buffers would be costly while prices remain elevated, and policymakers must weigh the expense of supporting facilities like Rough against the potential economic and social costs of winter supply disruption. The situation underlines how geopolitical events, storage capacity and seasonal demand interact to determine energy security.

Note: All figures quoted are based on the latest publicly reported data and statements from Centrica and National Gas.