To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the potential merits of UK producing gas domestically rather than relying on imports, given the fluctuations of gas spot market prices.
27 October 2021
The UK’s largest single source of gas continues to be the UK Continental Shelf (UKCS), accounting for around 48% of total supply in 2020. Remaining supply for 2020 was sourced via Norway (29%), LNG (22%), and interconnection to Europe (2%).
Gas is traded in global markets so the biggest factors influencing prices are global trends in supply and demand. Many of the factors affecting the spikes we have seen in wholesale gas prices are attributable to international activity extending beyond the UK’s domestic production.
Ultimately, the UK’s exposure to volatile gas prices underscores the importance of the Government’s plan to build a strong, home-grown renewable energy sector to further reduce our reliance on fossil fuels.