5 May 2010
Great Britain’s security of gas supply and options for improvement
Gas security of supply is a significant issue that faces governments, industry participants and consumers.
Significant investments in pipeline and LNG import capacity, had taken place in GB between 2003 and 2009. However, some concerns remained that GB may not have adequate security of supply to mitigate supply disruptions, particularly in light of the failure to fully liberalise the energy markets in Continental Europe and increasing import dependency and diverse sources of gas, raising the question as to whether the commercial market can provide for low probability high impact events.
In 2010, the UK’s Department for Energy and Climate Change (DECC) commissioned Pöyry to examine the security of GB’s gas supply between 2010 and 2025, and advise as to whether Government needed to introduce any additional measures, including storage and demand side response, to protect consumers.
Our often quoted analysis concluded that the GB gas market will be sufficiently resilient to security of supply risks and able to withstand most foreseeable problems, and that no major changes to current policies would be required.