Energy security at risk as grid is forced to rely on foreign suppliers

Britain faces the risk of severe gas shortages as plummeting North Sea production leaves the country dangerously reliant on imports, the UK grid operator has warned. The Telegraph has the story.

In a report published on Wednesday, the National Energy System Operator (Neso) said gas production was poised for a steep decline because of Labour’s energy policies – posing a risk to Britain’s energy security as the grid becomes in hock to foreign suppliers.

Neso’s analysis came after it assessed the impact of Labour’s ban on new exploration and the 78pc tax rates imposed on North Sea gas producers.

According to the energy body, gas availability will be 78pc lower by 2035 compared with today – equivalent to a decline of up to 13pc a year.

It also warned that the amount of gas produced by the North Sea this year will decline by over 80pc – from 27 billion cubic metres (bcm) to just 5bcm by 2035 – making the UK massively reliant on supplies from Norway, the US and Qatar.

“During periods of peak demand in the 2030s, we expect GB’s import dependency could rise above 90pc,” said the report.

“Our analysis identifies an emerging risk to UK gas supply security. In scenarios where all gas supply and network infrastructure are operational, this risk is evident only where peak gas demand remains close to or above current expectations.

“However, in the unlikely event of the loss of the single largest piece of gas infrastructure, gas supply falls short of demand.”

The reference to gas infrastructure refers to the potential failure of the pipelines feeding Norwegian gas to the UK or to a liquefied natural gas (LNG) terminal going offline.

Norway supplies nearly half the UK’s gas via North Sea pipelines – but it too is running out, with production set to halve between now and 2035, Neso warned.

The findings contradict Ed Miliband’s pledge to make the UK less reliant on imports and on “petrostates”.

Read the full story here.