Energy Crisis Looms as UK Gas Reserves Plummet to Just 1.5 Days of Supply

Britain’s gas reserves have contracted dramatically, according to data from National Gas, the operator of the UK’s energy transmission network. Previous reserves of approximately 18,000 gigawatt hours (GWh) have fallen to just 6,700 GWh—sufficient to meet only around 1.5 days of national gas demand.

Although Britain also maintains liquefied natural gas (LNG) reserves across several storage facilities, these holdings remain minimal and substantially smaller than those maintained by other European nations, which can sustain supplies for several weeks.

The depleted reserve position forces Britain to compete more aggressively in global energy markets to secure gas supplies. Energy traders have capitalised on this situation by raising prices, as Britain must submit higher bids than competing nations to obtain supplies. Consequently, UK wholesale gas prices now stand as the highest across Europe.

Against this backdrop, Goldman Sachs has cautioned that crude oil prices may exceed $100 per barrel within the coming week should supply disruptions in the Middle East remain unresolved. The financial institution projects that refined petroleum products could surpass previous price peaks recorded in 2008 and 2022 should disruptions to energy flows through the Strait of Hormuz persist throughout March.

Economists warn that the ramifications of surging energy prices extend beyond industrial sectors to affect British households directly. Households across Britain face mounting economic pressure from multiple directions as energy costs escalate.