UK gas output will fall 75% without further investment: OGUK
UK gas production will drop 75% by 2030 unless investment in new supply continues, industry body OGUK warned on October 6, reacting to the recent spike in gas prices.
The European gas crisis is the result of a sharp rebound in demand in recent months, particularly for LNG in Asia, which has driven away supplies from Europe. Russia has also been criticised for holding back additional supply beyond its contractual obligations.
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"The UK's own gas fields in the North Sea and Irish Sea have served the nation well – but their output is falling, partly because too few new fields have been developed," OGUK said.
The UK was self-sufficient in gas in 2004, but now relies on imports to cover half of its gas needs. Yet gas remains a key part of its energy mix, generating 40% of its electricity and heating some 23mn homes.
"We will need gas to power us through this green transition," OGUK CEO Deirdre Michie commented. "It would be far better to get as much of that gas as possible from sources we can control rather than rely on other countries."
The UK has been particularly hard-hit by the European gas crisis, in part because it relies on the fuel for a larger share of its power than most other countries. Its second main source of energy, offshore wind farms, have also underperformed this year, driving up demand for gas and even coal, which the UK is looking to phase out within the next three years.