10. Natural gas

Key data

(2017)

Natural gas production: 36.0 Mtoe (42.1 bcm), -44.6% since 2007

Net imports: 30.9 Mtoe (36.4 bcm; imports 47.3 bcm, exports: 10.9 bcm)

Share of natural gas: 39% of TPES, 41% of electricity generation, and 30% of TFC

Gas consumption by sector: 67.8 Mtoe (79.5 bcm) - power and heat generation 36.2%, residential 34.1%, industry 12.1%, commercial 10.6%, and other energy 7.0%

Historic gas peak demand: 465 Mm3/d (8 January 2010)

Overview

Natural gas is the largest energy source in the total primary energy supply (TPES) in the United Kingdom. The United Kingdom has the third-largest share of natural gas in the TPES among International Energy Agency (IEA) member countries after the Netherlands and Italy. Most of the gas is consumed in heat and power generation and for domestic heating. The United Kingdom’s domestic gas production fell sharply in the early 2000s to about 42 billion cubic metres (bcm) in 2017, which resulted in a rapid increase of gas imports between 2007 and 2017. Since 2004, the United Kingdom has been a gas net importer and two-thirds of the imported gas comes via pipelines from Norway, with the remaining share mostly as liquid LNG from Qatar. The United Kingdom also imports gas from the Netherlands and Belgium and exports to Belgium and Ireland.

Security of gas supply mechanisms are strong: the United Kingdom has a liquid gas market, abundant gas infrastructure, and a diverse supply from domestic production, liquefied natural gas (LNG), and pipeline imports. Great Britain uses price signals to ensure flexibility, to cover potential shortages, and to allow gas to flow to the United Kingdom, notably in the winter. The United Kingdom’s gas emergency preparedness was proven robust at the end of February 2018 during a period of cold weather (referred to as the “Beast from the East”). The high gas demand during this period resulted in the first gas deficit warning issued by National Grid Gas (NGG) since 2010. The security of gas supply has to be kept under review as several changes are impacting the outlook. Gas is the largest source for electricity, and so coordination between gas and power systems becomes an important issue for the security of electricity supply, notably with the planned phase out of coal-fired power generation by 2025. The long-term decline of Dutch and UK gas production, and lower contributions from seasonal storage, will make flexibility from interconnections and LNG critical for the security of gas supply. Neighbouring European countries Belgium, the Netherlands, and France are also expected to rely on higher gas imports.

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