UK risks running out of gas by 2030s, ministers told

3 min read
UK risks running out of gas by 2030s, ministers told
PrimeXBT Editorial Team
Reviewed by PrimeXBT

Topics in article

An official UK government assessment warns the country could run out of gas in the 2030s as North Sea production keeps declining. Ministers are now weighing direct financial support for gas storage and pipeline operators to prevent a supply shock, even as the UK pushes to cut its reliance on fossil fuels.

Britain risks running out of gas within a decade unless ministers take what officials call "unprecedented" action, according to an official government assessment of the UK's gas security. The warning comes despite the country's growing clean energy sources.

Government weighs financial support for gas infrastructure

The government is considering direct financial support for the UK's ageing natural gas infrastructure after a consultation found that a high-stress scenario could leave homes and businesses without gas within the next decade. Most respondents to the consultation said the industry was not likely to prepare for low-probability, high-impact events, and three-quarters agreed with an earlier warning that supply could run dry during a prolonged cold spell.

Possible measures include financial support for the owners of gas storage facilities and pipeline operators, to make it economic to upgrade and maintain that infrastructure in the decades ahead. Energy minister Michael Shanks said the transition away from fossil fuels will not happen overnight, and that the gas system will still play a role in the UK's energy mix for decades to come.

North Sea decline drives the supply risk

The government expects North Sea oil and gas production, in decline for 25 years, to keep falling by about 5% each year, deepening concerns over the UK's future gas security. The UK relied on gas for more than a third of its energy consumption last year, and while the Committee on Climate Change expects gas use to fall by just over three-quarters by 2050, domestic supplies are likely to decline even faster.

North Sea fields supplied almost half of the gas used in UK homes and businesses over the last five years, while Norway provided just over a third. Tanker imports from the US and the Middle East made up a fifth of UK gas, with 1% arriving by pipeline from continental Europe.

Rosebank and Jackdaw decisions loom

The renewed focus on gas security comes as the government prepares to rule on two contested North Sea oil and gas field proposals, Rosebank and Jackdaw. The prime minister has said he will take a pragmatic approach to North Sea drilling, arguing the resource should not be ignored while people are struggling with costs.

Source: The Guardian

Trading involves risk.

Most traded markets

XAU / USD
-0.9% 4,127.61
BRENT
+1.35% 73.620
BTC / USD
+0.7% 63,151.2
EUR / USD
-0.12% 1.14269
USTEC
-0.91% 29,428.7
XAU / USD.24
-0.9% 4,127.61
View all markets

Author

PrimeXBT
Our Editorial Team consists of leading experts with a proven record in the fields of trading, cryptocurrencies, blockchain and finance. We thoroughly research the sources of information in order to provide readers with quality content that serves edu...
Read author’s articles
Alert Triangle Risk Disclaimer
Disclaimer: Some past publications may be outdated. We recommend following our news to stay up to date with the latest information. For any questions, feel free to contact our support team via the chat below.
The content provided here is for informational purposes only. It is not intended as personal investment advice and does not constitute a solicitation or invitation to engage in any financial transactions, investments, or related activities. Past performance is not a reliable indicator of future results.
The financial products offered by the Company are complex and come with a high risk of losing money rapidly due to leverage. These products may not be suitable for all investors. Before engaging, you should consider whether you understand how these leveraged products work and whether you can afford the high risk of losing your money.
The Company does not accept clients from the Restricted Jurisdictions as indicated in our website/ T&C. Some services or products may not be available in your jurisdiction.
The applicable legal entity and its respective products and services depend on the client’s country of residence and the entity with which the client has established a contractual relationship during registration.

Today in markets

Browse Commodities News

Register Now

Trading involves risk

Get started in minutes

Our clients love how fast and simple our sign-up is. It takes just a few minutes to get started!

Get Started Get Started
Get started in minutes

Need Help?

Risk Warning:
Trading in leveraged products carries a high level of risk and may not be suitable for all investors.