British Government Presses for Domestic Production

The British Government published some updates about the offshore environmental legislation for oil and gas activities, in another effort to support the hydrocarbon industry. The update, which includes only technical aspects, reflects the attention paid in the UK for domestic production. Also on Monday, the Department of Energy & Climate Change published a new spreadsheet providing resulting time series for the average carbon intensity of electricity displaced by gas CHP.

‘The Government’s heat policy publication “The Future of Heating: Meeting the challenge” indicated that DECC would develop a bespoke policy to support new, Good Quality natural gas CHP, subject to confirmation that this would not displace lower carbon electricity generation’ DECC reiterated on its website. 

The move arrived a few days after the Government’s planning consent for the Preesall Underground Gas Storage Facility project.

‘The facility is proposed to be constructed on the east side of the Wyre Estuary at Preesall in Lancashire and will be used to store and extract gas from local underground salt caverns. The project may create up to 300 jobs during construction and up to 40 permanent jobs once operational’ the office of the Energy Minister Lord Bourne wrote on Friday. 

The government said that the location is suitable for the new project. 

‘Investment in new energy infrastructure is essential if we are to keep the lights on and bills down. This is a major project which will benefit the local economy by creating jobs and stimulating businesses’ Bourne commented.  

Recently, the British government Bproposed to change the rules for hydraulic fracturing in protected areas, and it formally established the Oil and Gas Authority (OGA) as an independent regulator.