Where the UK gets its gas from

The UK's natural gas supply is a dynamic blend of domestic production and international imports, delivered via pipelines and Liquefied Natural Gas (LNG) tankers. This energy mix is shaped by geological factors, global markets, and strategic energy security considerations. Understanding these complexities can help you make informed decisions about your energy usage.

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The UK's gas supply: an overview

Domestic production: the North Sea's contribution

For many years, the North Sea was a cornerstone of the UK's energy independence, providing a substantial portion of the nation's natural gas. However, domestic natural gas production from the North Sea has been declining for several decades. In 2024, natural gas production reached its lowest level since 1973, falling by 10% compared to 2023. This continued downward trend is consistent with the declining output from the mature North Sea basin, which peaked in 2000.

The shift towards imports

As domestic production has declined, the UK has become increasingly reliant on imports to meet its gas demand. The UK has been a net importer of energy since 2004. This shift means that understanding international supply routes and global market dynamics is crucial for comprehending the UK's gas supply.

International pipeline imports

The UK imports a significant portion of its gas through a network of international pipelines. These pipelines connect the UK to neighbouring countries, ensuring a steady flow of natural gas.

Norway: a key partner

Norway is a crucial partner for the UK's gas supply, providing a substantial amount of natural gas via pipelines. In 2024, Norway accounted for 76% of UK gas imports, an increase from 58% in 2023. The Langeled pipeline is a primary interconnector, bringing Norwegian gas into the UK at Easington and supplying a significant portion of the UK's gas demand.

Minimal Russian supply

The UK has significantly reduced any historical reliance on Russian gas imports. While Russia historically contributed a very small percentage to the UK's total supply, imports from Russia have been banned since 2022 due to geopolitical events. This demonstrates the UK's commitment to diversifying its energy sources and reducing dependence on less stable suppliers.

The role of Liquefied natural gas (LNG)

LNG plays an increasingly important role in the UK's energy mix, offering flexibility and access to a wider range of global suppliers.

Global sources of LNG

LNG arrives in the UK via specialised tankers from various countries. Key suppliers include the USA and Qatar. In 2024, LNG imports made up around 14% of the UK's total gas supply, with the US contributing approximately 68% of these LNG imports and Qatar around 8%. Other countries such as Angola, Nigeria, Peru, the Netherlands, Equatorial Guinea, Brazil, and Mexico also contribute to the UK's LNG imports.

LNG import infrastructure

The UK has several LNG import terminals, such as those at the Isle of Grain and South Hook, which are vital for receiving and processing these shipments. This infrastructure allows the UK to access gas from diverse global markets, enhancing its energy security.

How global markets influence UK gas prices

Regardless of where the gas originates, global energy markets and geopolitical events significantly influence UK household energy bills.

Understanding international gas trading

Natural gas is a globally traded commodity, and its price is determined by international supply and demand dynamics. Factors such as production levels, storage inventories, weather patterns, and geopolitical tensions can all impact wholesale gas prices. The UK's gas prices are closely linked to global LNG spot prices, which are driven by demand in Asia and events in the Middle East.

Impact on household bills

When wholesale gas prices rise on the international market, UK energy suppliers face higher costs to procure gas. These increased costs are then passed on to consumers through their energy bills, regardless of whether the gas itself comes from the North Sea, Norway, or an LNG tanker from the USA. This direct link means that UK households are susceptible to global price changes.

UK energy security and future outlook

Maintaining energy security is a key priority for the UK, especially as it navigates the transition to a net-zero economy.

Diversification strategies

The UK's strategy for energy security involves diversifying its gas sources, reducing reliance on any single supplier, and investing in robust import infrastructure. This includes strengthening pipeline connections and expanding LNG import capabilities. The aim is to ensure a resilient supply chain that can withstand disruptions in any one region.

The path to net zero

The UK is committed to reaching net-zero emissions by 2050. This involves a significant shift away from fossil fuels, including natural gas, towards renewable energy sources like wind and solar power. Exploring options like air source heat pumps or understanding the advantages of solar energy can be part of this transition. While gas will continue to play a role during this transition, the long-term outlook involves reducing its share in the energy mix. The average UK home uses around 2,700 kWh of electricity per year1. This figure highlights the scale of energy consumption that will increasingly need to be met by low-carbon sources.

Conclusion

The UK's gas supply is a dynamic system, balancing declining domestic production with a diverse portfolio of international imports via pipelines and LNG. While Norway and global LNG suppliers like the USA and Qatar are crucial, global market forces ultimately dictate the price paid by UK households. Fuse Energy provides unflinching transparency and practical control in the face of complex global energy markets, explaining the UK's gas supply sources and the mechanisms that link global prices to domestic bills. By offering clear usage data and 24/7 human customer support, Fuse empowers customers to understand and manage their energy consumption within this evolving landscape.

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References

1. UK Government. Subnational electricity and gas consumption summary report 2021