Gas imports down as demand fell in 2014

Statistics from the Department of Energy and Climate Change (Decc) show domestic demand for gas fell 19 per cent due to unusually warm average temperatures. Gas used by the industrial sector was down 0.7 per cent on last year.

However, gas became the main fuel used for electricity generation, with its share increasing by 5.9 per cent to 30 per cent, due to a decrease in coal generation and lower wholesale gas prices.

Pipeline imports from Europe were down 19 per cent to 477TWh in 2014, with the majority of this (57 per cent) coming from Norway and 15 per cent from the Netherlands.

Decc said the decrease in pipeline imports reflects both lower demand and a transfer towards importing liquefied natural gas (LNG).

LNG imports were up by 21 per cent to 124TWh, driven by increasing global supply and “weaker than expected” demand in Asia. LNG accounted for 27 per cent of overall gas imports, up from 20 per cent in 2013, with 92 per cent coming from Qatar.

While gross natural gas production for the UK Continental Shelf saw a modest increase of 0.2 per cent in 2014, the first year-on-year increase since peak production in 2000.

Figures also show total gas storage capacity in the UK is currently 4.6 billion cubic metres shared between eight facitilies. Total demand for 2014 was recorded at 70 billion cubic metres.