Energy Institute evening lecture - What is the future for gas storage in the UK?
22 March 2012, London
What is the future for gas storage in the UK?
The world is oversupplied with gas. Increased developments of shale gas add to the oversupply and make more markets self sufficient. Market prices in the US are at $2.5/MMBTU (16 p/therm).
How do these global market conditions impact upon the need for additional gas storage in the UK?
It can be argued that increasing indigenous discoveries of shale gas in the UK reduce the need for additional gas storage facilities as the UK becomes less reliant upon the import of gas supplies. Similar events in the US have seen gas market prices collapse, developments of new LNG facilities come to a halt and those still operating become unnecessary for the import of gas. Nevertheless gas storage facilities are still being developed. Signs of some of these issues already exist in Europe.
The days for gas storage to meet annual security of supply requirements or the need for seasonal storage in depleted reservoirs are perhaps coming to an end. A new focus may be needed based upon the opportunities of market volatility in both the daily gas and electricity market supply/demand balance with high gas deliverability to take the opportunity of volatility in the prompt market.
Andrew Knights, Senior Manager in our Petroleum Services Group, spoke on ‘What is the future for gas storage in the UK?' (PDF, 405 KB) at a recent Energy Institute evening lecture.
Visit the Energy Institute website for further details.