Britain’s largest gas storage facility, Rough could start storing gas this winter to alleviate the pressure from a potential energy crunch.
During the presentation of Centrica’s financial results for the first six months of the year, the group’s Chief Executive Chris O’Shea said the company is currently working with the government and is carrying out engineering work to allow the site to reopen soon.
Countries across Europe are struggling to build enough gas stocks to help them manage unexpected disruptions of gas flows in the winter months.
Last week, the North Sea Transition Authority granted the company an initial go-ahead to move forward in seeking further regulatory approvals required before gas storage operations can start.
Centrica closed Rough, a facility located 18 miles off the east coast of Yorkshire, in 2017.
The British Gas owner has pledged to invest £2 billion in the project.
It said: “We continue to work on developing the option to convert Rough back to a gas storage asset, with a view to ultimately converting it to a hydrogen storage asset.
“We currently estimate that this project would cost in the region of £2bn, including the cost of converting it to store hydrogen.”
Mr O’Shea added that had the site been open last winter, it could have cut around £100 from UK household energy bills.