Reducing gas storage in the UK has been an ongoing debate in recent years. Proponents of the move argue that it will help to reduce greenhouse gas emissions, while opponents suggest that it could lead to more expensive energy prices and a greater reliance on foreign imports. This article will examine the pros and cons of reducing gas storage in the UK, and explore whether or not it is really worth it. On the one hand, reducing gas storage could help the UK to meet its climate change commitments and increase its reliance on foreign imports. On the other hand, it could cause energy prices to rise and lead to energy security issues in the event of a supply disruption. This article will explore both sides of the argument and ultimately determine if reducing gas storage in the UK is really worth it.
Pros of reducing gas storage:
Reducing gas storage in the UK will help to reduce greenhouse gas emissions due to the fact that gas that is released from storage is not treated in the same way as gas produced from other sources. This means that it does not count towards the UK’s carbon budget. Therefore, by reducing gas storage and increasing the amount of gas that is produced, the UK will meet its climate change commitments more easily. Reducing gas storage in the UK could also help to reduce reliance on foreign imports. The UK currently imports around 50% of its gas and this figure is set to rise to 70% by 2050. By reducing gas storage in the UK, demand for gas will rise, which could help to reduce the amount of imported gas. Indeed, by 2022, the UK will have to start importing liquefied natural gas (LNG) due to declining North Sea gas production. Thus, by reducing gas storage, the UK could reduce its reliance on foreign imports and gain greater energy security.
Cons of reducing gas storage:
The most significant downside of reducing gas storage in the UK is an increase in energy prices. Gas is used throughout the energy supply chain, and replacing it with other forms of energy will increase energy prices. This is particularly true for electricity, as gas currently makes up around 30% of the UK’s power mix. Therefore, by increasing the demand for gas, we can expect to see an increase in electricity prices. Moreover, reducing gas storage in the UK could pose a threat to energy security. This is primarily due to the potential for supply disruptions, given that the UK only has two operational LNG import terminals, both of which are located on the south coast. In the event of a supply disruption, the UK would have to import LNG from abroad, which would be significantly more expensive than domestic supplies. Thus, by reducing supply and increasing demand, the UK is putting itself at greater risk of supply disruptions, which could pose a threat to energy security.
Potential solutions for reducing gas storage
There are various ways in which the UK could reduce gas storage while avoiding the pitfalls discussed above. For example, the UK could prioritize gas imports over LNG, which could help to reduce the risk of supply disruptions. By prioritizing gas imports over LNG, the UK is able to avoid using its two existing LNG import terminals and therefore reducing the risk of supply disruptions. Another way in which the UK could reduce gas storage is by importing more LNG and reducing demand for interconnector gas. This would help to avoid the pitfalls discussed above, as LNG does not count towards the carbon budget and is therefore less harmful to the environment. Furthermore, importing more LNG and reducing the demand for interconnector gas would help the UK to meet its climate change commitments more easily.
Conclusion: determining if reducing gas storage in the UK is worth it
As this article has explored, there are both pros and cons of reducing gas storage in the UK. On the one hand, it could help to reduce greenhouse gas emissions and reduce reliance on foreign imports. On the other hand, it could lead to an increase in energy prices and pose a threat to energy security. Ultimately, the question of whether or not reducing gas storage in the UK is worth it comes down to the government’s priorities. If they value reducing greenhouse gas emissions and reducing reliance on foreign imports more than they value energy security and energy affordability, then reducing gas storage is likely to be a worthy move.
