If the current exceptionally cold weather continues the UK could deplete its long range gas stores by as early as the second week in March. 

Most of the UK’s seasonal gas storage is kept at a North Sea depleted oil field known as Rough. Gas shippers and suppliers spend the summer months filling Rough with enough gas to see us through a typical winter. On cold winter days, the UK does not have enough imports to meet demand so needs to withdraw gas from Rough. On warmer days there is an opportunity to inject surplus gas into store.

 As you may well have noticed, this winter has been exceptionally cold throughout December and January. If temperatures stay as they are throughout February, there will be a serious shortage and National Grid will need to interrupt supplies. This would have a significant impact on spot market prices and would no doubt increase futures prices at the same time.