Ageing North Sea Gas fields increase import dependency

This article from the Times provides a timely reminder of the increasing importance of imported gas used in the gas-fired power stations that currently provide around a third of our electricity. Just a few years ago around 25% of gas was imported - now the figure is rising from countries such as Norway, Trinidad and Qatar.

“A spokesman for Centrica, owner of British Gas, said the UK’s ageing gas fields — many first tapped in the 1970s and 1980s — were no longer able to keep pace with domestic demand. “On the current trajectory we will have to import three quarters of our gas by 2015,” he said. Britain was still a net exporter of gas as recently as 2003 and was forced to import about 5 per cent of supplies in 2004 for the first time.”

The economy will become ever-more reliant on imports of liquified natural gas and sensitive to the impact of price volatility in the international gas markets. A gas cartel still looks a long way off, partly because most gas is traded on very long supply contracts and also because of the cost efficiency of transporting it and storing it around the world.

Britain was still a net exporter of gas in 2003, and was forced to import gas for the first time in 2004.