Preseli Pembrokeshire MP Stephen Crabb secured a Westminster Hall debate for Tuesday, on the subject of gas storage in the UK. Herewith some highlights from his speech:
"I am grateful to have secured this short but timely debate on the adequacy of UK gas storage. We are experiencing another winter of tight gas supply with supplies being drawn down heavily in the face of a colder than normal winter, and European supply disruptions caused by the dispute between Russia and Ukraine. Rather perversely, it is only because of a sharp drop in industrial demand, due to the recession, that the UK has avoided severe difficulties in meeting peak gas demand this year.
By 2010, gas imports could be meeting up to one third or more of the UK’s total annual gas demand, perhaps rising to around 80 per cent. by 2020. That represents a huge change from our position just five years ago when we were a net exporter of gas. I do not share the populist panic about imported energy, and I do not believe that energy independence is achievable or even a necessary or desirable goal in an age when international energy markets are increasingly interlinked. There is an unquestionable economic loss to the UK as our domestic oil and gas production declines and that is significant, but I shall not lose sleep about energy security and energy imports as long as we have a diversity of reliable suppliers with proven long-term reserves alongside as strong a domestic component as possible with diversity of infrastructure for the import, transmission and distribution of energy, including a measure of spare capacity and, crucially, an adequate stock of stored energy to serve as a buffer against supply disruptions.
The UK has significant stored capacity of oil and gas. We have around 80 days’ consumption of oil and petroleum products in stock and around 90 days’ consumption of coal. There is no common stocking obligation on those types of fuel, but it is interesting that there is around three months of coverage for both. Britain’s natural gas storage capacity is around 4.3 billion cu m, which represents no more than 15 days’ supply.
The UK needs more storage capacity, and the Government must provide a clearer message on how much new capacity is needed, where it will come from, when it will be delivered, and what can be done to mitigate the effects if it does not come on stream in a timely way."