UK Gas Output Rises, Demand Falls in Q1: Govt

UK gas production rose 3.6% in the first quarter of 2020 compared with the same quarter of 2019. This is associated with strong output at several terminals across the UK, the government said in a quarterly update June 25. The rise came from a 6.6% growth in associated gas and a 3% decline in dry gas.

Imports fell by 12% despite a 51% increase in LNG imports, so that they met just under half the total imports. Meanwhile exports increased by 14%, driven by increased trade with Ireland, while exports to the Netherlands were lower. As a result, net imports decreased by 14%.

This decrease in net imports was explained by a 4.6% drop in overall demand, notably a 24% dip in gas demand for electricity generation following exceptionally windy weather that increased the output of renewables.

Despite slightly warmer temperatures than last year, domestic gas use increased 4.4% and other final users' demand rose by 4.5%, underpinning a 2.7% increase in final consumption. This increase could have been due to the impact of the Covid-19 pandemic on household behaviour as people began working from home both before and after the UK government lockdown announcement March 23, the government said.