20 June 2017
(“Centrica” or ‘the Company’)
Cessation of Storage Operations at Rough
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.
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