UK Gas Production up 5% in 1Q 2017

UK gas production increased by 4.7% year on year in 1Q 2017 to 11.55bn m³ (124.2 TWh), thanks to the start-up in late 2016 of the North Sea Cygnus field one year behind schedule. That's still only one-third of UK’s 1Q 2000 peak gas production level, according to official data released June 29 by the UK government’s Department of Business, Energy and Industrial Strategy.

Gas exports from the UK fell by 23.5% in 1Q 2017 to 1.4bn m³, their lowest since 2004, thanks to the ramp-up of Ireland’s Corrib field, but also because the UK Rough storage facility was inactive which meant that less was available to draw from stock and more was needed from overseas.

There was also a 44% contraction in 1Q 2017 UK LNG imports to 1.9bn m³, but this was offset by higher imports by pipeline from Norway – of which 6.5bn m³ came from the Langeled pipe. Overall gross imports were up 3.6% to 15.7bn m³ in 1Q 2017, meaning that net UK imports were 14.3bn m³.

UK gas demand was 4.2% lower year on year at 17.4bn m³, as mild temperatures led to a near-6% decline in residential use, but gas used in power generation rose by 10% to 7.4bn m³. Although gas used in the steel industry was only 0.65% of overall consumption, it too increased by 3.5%.

Of UK electricity generation, coal’s share shrank to 11.3% (from 15.9% in 1Q 2016), while that of gas went up to 39.9% (37%) as did renewables to 26.6% (25.6%). Overall generation went up by only 1% to 93.2 TWh, while final consumption was 2.3% lower at 80.7 TWh. Coal is less necessary in milder weather: the UK generated zero electricity from coal April 21 and set a new record for non-carbon generation around lunchtime on June 7.

Mark Smedley