The future prospects for the UK’s gas supply do not look great. What is the scale of the problem and what does it mean for the consumer?

Gas is the number one energy resource that keeps Britain running. Almost 40% of the energy that the UK comes from gas, by itself and through gas fired power stations. This is more than coal, nuclear and renewables combined. Until recently the UK was able to satisfy this demand itself, but this is no longer the case.

Global Gas Supplies

It is possible to buy gas from other countries. The pipelines to the continent exist, and then extend all the way to Russia and other former Soviet states. Much of Europe has come to rely on gas from the East. This means that with demand growing across Europe and supply not keeping pace that prices are rising and Britain can no longer insulate herself against it.

The demand for gas fluctuates throughout the year. During the winter the demand for gas for heating is much greater. Similarly the global supplies of gas can be disrupted by trade disputes, war or accidents. Storing gas is one way in which some countries seek to ensure continuity of gas supply. Britain is failing to do this.

Compared to other European countries Britain keeps very little gas in reserve. It might sound surprising given our dependence on gas, but there is no infrastructure for the long term strategic storage of gas. If there was a problem with the supply of gas the UK reserve would last for no more than thirteen days. This compares to an average of three month’s supply that other European countries keep on reserve.

Investment in the future

Investment in a system for storing gas would be one way in which the consumers could be protected from both predicted and unpredictable rises in the international cost of gas. Another would be to increase the national output of gas, however, the gap between demand and proven or unproven reserves is projected to continue widening.

There is money being spent to improve the infrastructure for importing gas. It is hoped that this will help keep the cost of buying gas from abroad down, leading to a better consumer price. Pipelines to mainland Europe and to the Scandinavia are examples of the type of project being worked on. In addition to this there have been massive investments in the facilities to take delivery of liquefied natural gas by the supertanker. Liquid gas is being shipped in from as far away as Qatar and Malaysia.

The price of gas and electricity is going to continue to rise at a difficult rate. With this in mind reducing the dependence on gas for electricity generation needs to be made a priority now, otherwise within a decade bills could become crazy. Renewables such as wind can fill some of the gap, but hard choices are going to have to be made about whether we build a massive new generation of nuclear power plants, burn the coal in the ground and forget about climate or have the lights go out.

This post was written by Elena Price.