Britain must find new sources of energy fast as the quantity of imported natural gas is expected to increase at a much faster rate than the government had previously expected, the chief executive of Centrica has warned.
“In primary energy, the UK’s production of gas is falling rapidly,” Sam Laidlaw has told an international energy conference in Houston. “North Sea oil and gas output has fallen by 38pc over the last three years. By 2020 we will be reliant on imports to meet 70pc of the country’s gas needs. So when it comes to security of supply, there is a pressing need for solutions.”
Energy Minister Michael Fallon had previously said in November than Britain would import three-quarters of its natural gas by 2030, up from about 50pc at present. Late last year, Centrica signed a new deal with Qatar to import liquefied natural gas by tanker. The Gulf state already accounts for 15pc of UK supplies.
Rising energy bills and a growing dependence on imported gas have increased pressure to step up development of shale resources in the UK through fracking. The vulnerability of UK energy supplies has also been exposed by the unfolding dispute between Russian and Europe over Ukraine in Crimea. Russia is Europe’s largest supplier of gas and a significant exporter to the UK.