LONDON—The U.K. government on Monday gave tentative approval for the construction of a £600 million ($942 million) natural-gas storage facility aimed at correcting years of government and market failure to build enough back-up capacity to keep pace with demand and to fill unexpected supply disruptions. The planned underground facility would be the biggest built in many years in the U.K. It is expected to boost the nation's total gas storage capacity by 30% by 2014, when it is slated to start operation, the Department of Energy and Climate Change said. Inadequate gas storage capacity—a result, in part, of tedious government planning processes and many firms' unwillingness to risk their capital—has been a crucial weakness in the U.K.'s energy system in recent years. A lack of such capacity contributed to higher consumer natural-gas prices during January's cold snap. The U.K. has lagged behind other European nations in building storage terminals that can be leaned on quickly during periods of tight supply and surging demand.[Read more...]