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 08 August 2007
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Gas Markets

On 16 May 2006, the Secretary of State Alistair Darling set out the national need for additional gas supply infrastructure in a Parliamentary Statement of Need - see the Related document link on the right-hand side of this page.

A press notice was also released which contains a link to this statement and another made on the same day about the winter energy supply.

The Department of Trade & Industry prepared information on understanding the gas supply in response to questions raised during the course of winter 2005-6.  This information is designed to clarify issues around gas contracts, interruption of industrial supply, back up fuels and managing demand reduction, fuel switching (help with environmental permits) and contingency arrangements for industrial users.  National Grid was able to maintain the supply-demand balance last winter, even during the cold periods in November 2005, at the end of December 2005 and in March 2006 (including when a Gas Balancing Alert was issued on 13 March).

There is a full section on contingency arrangements for the gas supply, were a situation to arise where they would be needed, as business has been interested in how these work, and contingency planning is always prudent. This pack was last updated on 3 February 2006 and will be re-visited in the build-up to winter 2006-07.  The DTI is grateful for the assistance of Ofgem, National Grid, and the representative bodies and trade associations they work with who have helped contribute to this pack.

DTI will continue to work with them to improve and update this information.

At the start of 2006, the Secretary of State announced that he would consider bringing forward new legislation to facilitate the development of offshore gas infrastructure technologies.

On 16 October 2006, Prime Minister Tony Blair officially opened the Norwegian Langeled pipeline, set to deliver up to 20% of the UK's average winter gas needs. See the Hydro website (under 'External Links') and the accompanying press notice for more details.

In November 2006 the DTI launched a consultation: 'Offshore Natural Gas Storage and Liquefied Natural Gas Import Facilities'. This consultation considers the need for, and requests views on, changes to existing legislation with regard to the following activities:

  • the storage of natural gas in non-hydrocarbon features (e.g. salt caverns);
  • the storage of natural gas in hydrocarbon features (e.g. partially depleted oil and gas fields); and
  • the unloading of Liquefied Natural Gas (LNG) offshore. 

A preliminary consultation was carried out through the DEFRA Marine Bill consultation, which closed on 23 June 2006.  This consultation seeks views on the more detailed policy options that the DTI is considering.

This consultation runs from 24 November 2006 to 16 February 2007.

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