The UK's energy market regulator, Ofgem, decided on November 24, 2023, to strengthen gas import capacity through connections with Europe. This action is taken to maintain flexibility in gas imports, especially during times of severe need.
Agreement with National Gas Transmission plc
Ofgem has allowed Interconnector Limited to enter into an agreement with National Gas Transmission plc under its license to enhance the capability of gas imports through the UK-Belgium interconnection. Britain is connected to Europe through several links, allowing gas to flow in both directions depending on demand. These pipelines, which connect the UK's gas system to gas hubs in Belgium and the Netherlands, are only occasionally used for gas imports.
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Reduction in Import Capacity
The amount of gas import capacity in the UK market through continental connections has decreased in recent years. This reduction is due to a combination of diminished commercial incentives for imports from Europe and specific technical reductions in connection capacities. However, these connections, according to Ofgem, provide “an important option during periods of very high demand, such as harsh winter weather conditions.”
Glenn Bryn-Jacobsen, Director of Energy Systems and Resilience at National Gas, noted that maintaining import capacity through continental connections is recognized as an important measure to strengthen the resilience of the gas system. This action enhances the gas system's ability to respond to challenging conditions if they arise.
Jack Presley Abbott, Director of Energy Management and Security Systems at Ofgem, stated that maintaining these gas connections is crucial as long-term changes in the energy system continue. We have confirmed the necessary agreement to maintain this important capability, and for this reason, we are consulting on the proposed legal mechanism to recover its costs.
On November 23, 2023, the UK government also approved the long-delayed Jackdaw gas field. This approval is the first for a new project in the North Sea since energy prices surged due to the Iran war. Jackdaw could soon supply gas to British homes and businesses.
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