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UK faces gas supply risks as LNG storage and imports remain constrained
With gas still supplying about a third of the UK’s energy needs and roughly 24 million households on gas, the government is signaling it may need to intervene to secure storage and import capacity.
The UK government is responding to warnings about gas supply risks into the next decade, even as overall gas consumption continues to decline and the country accelerates its energy transition, according to The Guardian.
The report highlights that the UK still depends heavily on gas, with gas making up about a third of the country’s overall energy needs last year and peak winter demand remaining high. It also points to shrinking North Sea supply, estimated at around 40% of supply, limited gas storage, and constraints on importing LNG by tanker.
National Grid’s Grain LNG terminal gas storage in Kent is one of only three such sites in the UK. The Guardian notes that an energy system operator warning in November flagged an “emerging risk” if key import infrastructure were offline during a cold snap.
The government’s formal response, presented as an interim document that calls for more analysis, nonetheless indicates a shift toward the possibility of intervention. That could include contracts to support additional storage or more import terminal capacity, rather than relying on the market alone, The Guardian reports.