Gas Crisis: Another 419 GWh taken from storage - 54 days on a 5 day rolling average before forced interrupt

10.22.00pm GMT Thu 24th Nov 2005

Gas reserves still being depleted - CIA, Hemming

John Hemming MP has revealed that gas was still being taken out of storage whilst the government were claiming there was no problem.

On a day when Malcolm Wicks claimed that the National Grid was "awash with gas" and Ofgem sources claimed no gas was taken from storage the National Grid has reported that 419 GWh of gas was taken from a combination of Long, Medium and Short Term storage.

John Hemming said, "On a 5 day rolling average from Saturday to Wednesday we are now looking at 54 days before the safety monitors are breached and there is forced cessation of supply to all interruptible consumers. This is around mid January when the peak month for demand is February. The good news is that Rogh is no longer maxed out, but that is good news within the context of generally a disastrous situation."

"There has been a slight easing in demand probably as a result of high energy users deciding to close down. My concern is that maybe only as low as 5% of winter supply is from interruptible sources. This means that only about 20 mcm/d of demand can be cancelled this way. When 40 mcm/d are being taken from storage in what is not one of the coldest days of the winter - although there is snow, it is clear that this will not be a sufficient demand reduction."

"Malcolm Wicks needs to take his blinkers off and look at the devastation being caused by the government's approach to energy security and look at the real facts. At least following my email of this morning, we have had reports that Ofgem and the DTI are now talking about gas problems - it's good to talk."

"Tonight's cold weather could easily add another 30 mcm to demand. "

"The Chemical Industries Association (switchboard 020 7834 3399) have confirmed that the current prices in the gas market are forcing many of their members to curtail or suspend production. Gas supplies are available only at wholly uncompetitive prices. Electricity prices too are being driven ever higher because of the dependence on gas for generation.

"The overall energy situation is far worse than even pessimistic forecasts of what could happen so early in the winter. The combination of high and volatile prices, coupled with uncertainty over supply during the rest of this winter, is undermining the UK as a manufacturing base."

ENDS