Will Investment in Storage Protect UK Gas Consumers?
Posted on: 05/01/2015

Former Energy Minister Charles Hendry has issued a statement claiming that the British government is currently ‘relying on luck’ to deliver gas supplies, suggesting that investment in gas infrastructure to provide more storage facilities is something to be strongly considered.

However Mr Hendry’s opinion has been questioned by one of his successors, fellow Conservative Michael Fallon, refused to partake in increasing gas storage, despite the fact that a government investigation proved it could save consumers £1bn.

At current Britain can only hold around 15 days of gas supplies in long-term storage, whereas our European counterparts could sustain gas supply for over 100 days if production was cut. This puts Britain at an extreme disadvantage as the recent low oil and gas prices will quicken the decline of the North Sea production, pushing consumers to become more dependent on gas imports.

Looking back on the past nine winters there has been several times where UK gas storage reserves fell to “disturbingly low”, Britain was lucky on these occasions however Hendry notes that “we cannot build an energy policy on luck; it has to be built on energy security”.

The recent oil price decline means that our luck may have run out and dependence on the North Sea may not be as viable in the future as we had hoped. Despite Britain’s low gas storage capacity, investment in big new sites has not proved commercially feasible. Increased storage has been demanded by many, putting pressure on suppliers to ensure more is built arguing that this would help to protect gas consumers from price spikes or shortages.

With the troubles that have been faced by the gas sector in recent times, it is time to consider the options for its future and ensure that every effort is made to safeguard domestic gas production. Increasing storage is a strong contender in ensuring this protection, Mr Hendry said “this is so central to our national security that we now need to go further and require more capacity to be built. It is an insurance programme, with little downside, and many benefits.”

If you work within the gas industry and are currently looking for new opportunities please call our oil & gas team on 02392 603030, or send an email to info@blueprintrecruit.com.

Vacancies By Email

Get There First With Vacancies By Email

Get specific job types, tailored to your requirements, sent straight to your inbox as soon as they are available. Register Now »

Latest Oil & Gas Jobs

Methods Department Pipelay Lead Permanent | Surrey, Surrey, England | £85,000 Per Annum

We have an excellent opportunity for a Pipelay Lead to join the Methods Department with our client, a leading oil & gas company based in Greater London. Our client provides drilling, engineering, procurement and pipeline services to the Oil & Gas sector.
Read More »

Project Quality Engineer Permanent | Surrey, Surrey, England | £50,000 Per Annum


Read More »

Project Quality Engineer Permanent | Surrey, Surrey, England | £50,000 Per Annum

Our client- a highly respected consultancy within the Oil and Gas sector- is seeking a Project Quality Engineer to work with them on a permanent basis. Company Our client is a highly respected consultancy which has established a worldwide reputation
Read More »

Materials Engineer Contract | Leatherhead, Surrey, England | £55.00 Per Hour

We are seeking an experienced Materials Engineer for a global firm on a contract basis in Greater London. Our client delivers expert services to Government, Technology, Hydrocarbon sectors and Oil & Gas EPC. With a portfolio that includes some of the worl
Read More »

Materials Corrosion Engineer Permanent | East Molesey, Surrey, England | £65,000 Per Annum

We are currently seeking a Materials Corrosion Engineer to join a specialist contractor within the Oil & Gas industry on a permanent basis in East Molesey.
Read More »