Rishi ‘close’ on gas deals to stop winter blackouts
MINISTERS are trying to form an international alliance to tackle gas supply shortages in the face of winter blackout threats.
Prime Minister Rishi Sunak is close to clinching a deal with the United States, where 10 billion cubic metres of liquefied natural gas (LNG) will be sent to the UK over the next year.
The Government has acknowledged it is pursuing long-term deals with foreign states, reportedly including Norway and Qatar.
The UK, which has much less gas storage than other European countries, relies on imported gas to meet around half of its demand.
Top provider Norway accounted for two-thirds of the UK’s imported supply last year, with LNG making up the bulk of the rest.
Co-operation
The National Grid has warned household lights could be switched off this winter, after Russia’s war in Ukraine slowed the flow of gas.
And Analysts Cornwall Insight predict the energy price cap will spike to £3,702 a year in April, when the Government’s support package ends.
The Prime Minister’s spokesman said the Government was open about its desire to work with a number of countries. He said: “The US [is one country] where there is more we can do to work together to help tackle some of these energy price spikes.”
The “energy security partnership” with America builds on discussions between Mr Sunak’s predecessor Liz Truss and President Joe Biden. The deal might also include more cooperation on nuclear power projects and a drive on renewables.
A Government source indicated a deal was not “imminent”, but could be confirmed towards the end of the month. German officials are also hoping to form a natural gas pact with Britain, allowing the nations to bail each other out if an extreme cold snap created shortages.
The price of natural gas has fallen recently, following a mild start to winter and successful European efforts to fill their storage facilities.
In the UK, imports from Russia made up four per cent of gas used last year.The Government has pledged to phase out Moscow’s oil imports by the end of the year and gas imports as soon as possible.
Graham Gordon, of the Catholic Agency for Overseas Development, said: “Energy security cannot be achieved by relentlessly pursuing fossil fuels. We need significant investment in renewable energy at home and overseas, so nations have control over their own energy.”