The UK’s gas supply plays a critical role in energy security, especially during peak winter demand. But how resilient is it in the face of global shifts and local limitations?
Where Does the UK Get Its Gas From?
As of 2024, Norway remains the UK’s largest gas supplier, accounting for just over 50% of total gas supply. In fact, Norway has been the dominant source of UK gas imports for 24 of the past 25 years, primarily through state-owned reserves.
The UK also produces its own gas from the UK Continental Shelf (UKCS) in the North Sea, which last year supplied 33% of the UK’s needs. Although the UK produces more gas than this domestically, over a third of it was exported last year. This is largely due to the UK’s limited gas storage capacity, which is only enough to meet just over a week’s winter usage. This leaves us more vulnerable to fluctuations in prices than countries such as Germany for example who have up to eight times this capacity, or the Netherlands who have approximately five times this level of storage capacity.
Britain also supplements its supply of gas through interconnectors with Belgium and the Netherlands and maintains one of the largest liquefied natural gas (LNG) import infrastructures in Europe, with three LNG terminals. In 2024, LNG imports came into the UK from:
- United States: (11% of total supply)
- Qatar: (1.2%)
- Trinidad & Tobago: (1.1%)
The UK has no direct gas pipelines from Russia, and Russian gas accounted for less than 4% of UK supply in 2021. That figure has now fallen to zero.
How Has the UK’s Gas Supply Changed Over Time?
The North Sea has been a key part of the UK’s gas supply since 1966, enabling energy self-sufficiency until as recently as 2004. Since the mid-2000s however, production has reduced dramatically, and imports have increased as a result.
The future of North Sea gas is now limited. Proven reserves—those with a 90% or higher chance of being extracted—have declined to just 19% of their 1996 levels, based on analysis of data from the Office for National Statistics (ONS). Typical timelines to get to production from any initial discovery average at 28 years so any new licenses that have recently been granted will potentially have little impact on overall supply. We can expect to increasingly rely on imported gas in the future whether that is through existing pipeline of LNG shipments.
What Does the Future Hold?
Looking ahead, gas will play a smaller role in the UK’s energy system as the country moves towards net zero by 2050. While it will still be used for heating homes and powering industry, the emphasis will shift toward carbon-neutral alternatives and renewable energy. While gas will remain part of the UK’s energy mix, particularly in the short and medium term, it will certainly have a reduced capacity over time.
As domestic supply dwindles, for any gas that we do need, we can expect to increasingly rely on imports in the future whether that is through existing pipelines or LNG shipments.
Globally, who are the Key Players When It Comes to Gas?
Worldwide, the U.S., Russia, Iran, Qatar, and China are leading producers of natural gas, with Qatar standing out as a major LNG exporter. The United States leads in natural gas production largely due to its drive for increased shale production and increased global demand for LNG exports in recent years. Both oil and gas exports are vital to the economies of countries like Saudi Arabia, Russia, and the UAE, while major consumers include the U.S., China, and India.
International organizations such as OPEC, OPEC+, and the IEA play critical roles in regulating supply, influencing prices, and managing geopolitical dynamics. The industry’s landscape is however continually evolving with shifting energy demands and the global push for cleaner alternatives.
Is the UK’s Approach to Gas Supply Resilient?
Whilst increased storage would certainly add to the UK’s gas supply resilience, our current approach is seen as robust enough to meet both current and future demands. Due to obtaining gas from a number of different sources, including our own production, we have a broad approach to gas supply that is agile enough to adapt to global influences.
This does not however safeguard us against price rises as we have seen in both gas and electricity in recent years. Whilst a number of things can affect the price that we pay for gas in the UK such as global supply, seasonal demand, oil prices, any sanctions and embargoes, we like any other country, are susceptible to market trends directly impacting our bills.
By Sam Richards
Sam Richards is Principal Consultant at Skewb. To speak with him about this topic in more detail, you can connect with him on LinkedIn.