Skip to content

Shale Industry Uses Energy Insecurity To Make Point on Gas Supply


Britain’s natural gas fracking industry is using a cold snap that’s gripped large swathes of Europe this week and laid bare weaknesses in the U.K.’s energy supply to make its pitch.

Britain’s natural gas market has been stretched to its limits as the coldest spell since 2010 tests the nation’s energy and transport network. U.K. pipeline manager National Grid Plc even urged industry to curb its gas usage while the cold weather persisted.

As gas prices surged to record levels, industry bodies and Ineos Group Ltd. called for Britain to improve energy security by producing more gas at home rather than rely on imports.

“The U.K. is worryingly dependent on gas imports and this is forecast to increase to 80 percent by 2035,” said Ken Cronin, chief executive officer of industry body U.K. Onshore Oil and Gas. “The need to ensure we have our own homegrown source of gas rather than pursuing this continued over-reliance on imports has today become very evident.”

Relying on Others

Britain’s gas production is falling while imports are forecast to rise

Source: U.K. Oil and Gas Authority

Britain is Europe’s biggest gas consumer after Germany. Once a major producer, the U.K. increasingly relies on imports during winter months as output from the North Sea falls. It’s a risky dependency when it’s cold across Europe, such as this week when a mass of Siberian air pushed in from Italy to Scandinavia.

On top of that, LNG shipments to Europe this season have been scarce as a surge in demand in China pushed up the cost of the super-chilled fuel.

Ineos, which is seeking to develop its own shale resources, agreed to reduce its consumption by 20 percent at its Runcorn plant in the U.K. and said there is an “urgent need for increased domestic supplies of gas.”

“These supplies can be provided by shale and yet multiple projects are being held up at the planning and surveying stage,” the company said by email. “The resources beneath our feet can be used to create jobs, heat our homes and go a long way toward self-sufficiency.”

Full story