UK Gas Production Drops to Six-Year Low in 2018

UK gas production, imports, and exports all fell in 2018, a government report showed March 28. Output dropped 3.1% year on year. It was the first fall in six years, the report notes, before noting that the decline “follows the longer term downwards trend since peak production in 2000”. 

Imports also fell, by 2%, despite a 3.1% rise in overall final consumption. However, LNG imports are growing. While overall gas imports dropped 5.9% in the fourth quarter of the year, LNG imports nearly trebled to reach the highest quarterly volume since Q2 2014.

Meanwhile, gas exports across 2018 declined by one third to their lowest level since 2005. It was only the third time since 2000 that the UK exported less than 100 TWh of gas.

Demand for gas used for electricity generation in 2018 decreased by 4.7% as increased output from renewable energy continues to displace the demand. A survey of statistics from November 2018- January 2019 shows gas remains the fuel of choice, however. Gas drove 44.5% of electricity generation by major power producers through the three-month period. Renewables provided 29.9%, nuclear 17.7% and coal 7.4%.