Mayor Calls for Government Decision As East Yorkshire Gas Facility Nears Closure

There are fears that national energy supplies and hundreds of local jobs are at risk as the UK's largest gas storage facility off the East Yorkshire coast faces closure without urgent government intervention.

There is a warning that national gas reserves will plummet to less than six days if a critical storage facility off the East Yorkshire coast is forced to close in 2027.

The Rough gas storage site, located 18 miles off the coastline and connected to the onshore Easington Gas Terminal, faces an uncertain future as its current operating licence expires in April 2027. Operator Centrica warns the facility will close by spring without a long-term state support mechanism, potentially losing hundreds of well-paid jobs and jeopardising a proposed £2 billion investment.

That investment could support almost 5,000 roles during construction and roughly 640 full-time equivalent jobs over the project's lifetime, alongside increasing the site's capacity to hold around 30 days of gas.

Mayor of Hull and East Yorkshire Luke Campbell has written to the Secretary of State for Energy Security and Net Zero, demanding a swift decision to prevent the irreversible loss of the site.

Mayor Campbell said:

"I’m not asking Government to sign off Centrica’s preferred model without scrutiny. Value for money and consumer protection matter. I’m asking Government to make the decision while there is still a decision to make.

Hull and East Yorkshire already helps power the country. If this investment stacks up nationally, I want the jobs, skills and supply-chain benefits that come with it to be felt here too.

Rough is bigger than one company or one site. It is part of Britain’s energy security and it sits just off our coast.

I’ve been offshore, I’ve seen the scale of it and I’ve spoken to the people who keep it running. There are skilled jobs here, a Humber supply chain and a company saying it is prepared to put around £2billion into the future of the site."

Centrica currently argues that markets do not make the facility financially viable, leaving it practically empty. However, energy insiders have raised concerns that the company is asking for too much from the government, potentially expecting the public to underwrite commercial gas market volatility.

Centrica's chief executive officer Chris O’Shea said:

"Storage is an insurance policy against supply disruption and price spikes. But if the government chooses not to include Rough in its existing regulatory support model, it will remain empty over the winter and close by the spring, losing hundreds of unionised, well-paid jobs.

The government’s interim consultation on the future of gas accepts that the market is unlikely to support storage on a purely commercial basis. But we need action now. With the right framework, we can invest £2billion to preserve one of the UK’s most important energy resilience assets. This is not simply a commercial decision for Centrica; it is a strategic decision for the country. But we are running out of time."

Trade union officials are now pushing for the site to be taken into public ownership if an agreement cannot be reached. Unite general secretary Sharon Graham warned that the public will not forgive the government or Centrica if the facility closes, while national officer for energy Simon Coop highlighted the site's importance.

Simon Coop said:

"Rough is a part of the UK’s critical infrastructure and is vital to energy security supply.

Therefore, the government needs to work with all parties to secure the future of Rough. If that is not possible then Unite will push for the government to keep the site open at all costs including the option of public ownership."

Despite the warnings, the Department for Energy Security and Net Zero maintains that the country's gas supply remains highly resilient, noting that gas storage only accounted for five percent of supply last winter.

A spokesperson for the Department for Energy Security and Net Zero said:

"UK gas supply is diverse and highly resilient. Gas storage was only 5% of our supply last winter.

We have plans in place to maintain our energy security, whilst ensuring value for money for consumers and continuing the transition to clean power."

The government confirmed it is still exploring commercial support for the gas storage sector to help protect security while demonstrating value for money for taxpayers. Meanwhile, business leaders hope a redevelopment of Rough could eventually see the site adapted to store hydrogen, safeguarding thousands of jobs across the region's energy sector.