Gas deal set to ease energy crisis
Sunak will announce US partnership to ship liquefied natural gas to allay blackout fears
RISHI SUNAK is poised to announce a major gas deal with the United States after the Cop27 climate change summit, The Daily Telegraph can disclose.
Talks about the “energy security partnership” are in their final stages, with the US planning to sell billions of cubic metres of liquefied natural gas to Britain over the coming year.
It comes after the war in Ukraine exacerbated energy shortages, prompting warnings of blackouts this winter.
Details of the deal can be revealed after the Prime Minister used a visit to Cop27 in Egypt to urge world leaders to “live up to” their promises to tackle climate change.
The UK’S willingness to import more fossil fuels while urging action to tackle climate change is likely to be attacked by Labour, but is seen as essential to ensuring energy security.
The deal will be welcomed by senior Tories, who have raised concerns that the drive for net zero has been prioritised over mounting energy bills for households and the taxpayer.
Britain has been in advanced negotiations with countries around the world to solve the energy crisis fuelled by Russia’s invasion of Ukraine in the spring.
The Telegraph has spoken to half a dozen current and former government figures who are familiar with talks over the US-UK energy deal.
It is understood that Liz Truss, the former prime minister, and Joe Biden, the US president, had discussed details of the agreement.
Downing Street insiders had hoped to announce the package on Oct 21 but that plan was scrapped as Ms Truss gave in to Tory pressure the day before and resigned.
The deal has continued to be pursued by UK officials in Washington under Mr Sunak, with an announcement expected in the next week or two, though a date is yet to be decided.
While the specifics of the deal are not yet fully signed off, the package’s basic structure has remained consistent under both Ms Truss and Mr Sunak, according to those involved.
The US is set to promise to export billions of cubic metres of liquefied natural gas to the UK, according to current and former government figures.
The UK hopes the figure will be around 10 billion cubic metres, said two UK sources. The whole of the European Union was promised 15 billion cubic metres by the US this spring.
But wrangling about the exact figure continues and it remains possible that a specific number will not be named in the public declaration.
The agreement will be hailed by London as proof that the UK is moving away from Russian-linked oil and gas imports in the wake of the Ukraine invasion.
It would also provide reassurance on UK energy supply.
The National Grid has warned of blackouts this winter between 4pm and 7pm on very cold days if there are European supply problems.
It is unclear how much of the gas – which will be sold by US companies rather than the US government – will be in the UK energy system for this winter.
A Whitehall source said the way the deal was constructed would mean the gas was provided “over the next year”.
Much will depend on the specific terms agreed with private companies.
London has more freedom to strike bilateral energy deals with countries since leaving the EU.
The UK is also pursuing deals to import more liquefied natural gas from Norway and Qatar, with those agreements having the potential to dwarf the US deal in terms of volume.
Liquefied natural gas is used for cooking, generating electricity and heating homes, as well as manufacturing products such as fertiliser and medicine.
The US-UK agreement, which would be styled as a new “energy security partnership” or “initiative”, would be much wider than just gas, incorporating a drive on renewables.
A pledge to work together to develop future nuclear power projects is included in the deal. The UK is hoping for help developing small modular nuclear reactors.
There are also expected to be declarations of joint work to improve energy efficiency, reduce consumption and invest in renewable technologies.
Both Washington and London are keen to show their ability to work together in the face of Russian aggression, with Vladimir Putin accused of weaponising Russian energy exports.
JUST STOP OIL protesters have been warned they face up to a decade in jail under tough new laws after members of the group climbed on to motorway gantries causing chaos on the M25 during yesterday’s rush hour.
Police had attempted to head off the action by carrying out a series of intelligence-led raids at the weekend, arresting seven suspected organisers.
But the motorway had to be closed when activists struck at 13 locations around the 116-mile London orbital yesterday morning. The activists, some of whom were glued or chained on to the gantries, were arrested on suspicion of conspiracy to cause public nuisance, a new offence under the Police, Crime, Sentencing and Courts Act 2022 that carries a maximum penalty of 10 years in prison.
Louise Harris, 24, from Luton, Bedfordshire, who was one of those who took part in the action, described it as “an act of self defence”.
In a video recorded from a gantry high above the M25 she said: “I’m here because I don’t have a future and you might hate me for doing this, and you are entitled to hate me.
“I wish you would direct all that anger and hatred at our Government. They are betraying people like me.”
Miss Harris said over 1,000 people had died in the UK during the summer’s heatwave, which she claimed was being exacerbated by the use of fossil fuels.
She said: “It is an act of murder. This is an act of self defence. We need you to join us in order for this to work, in order for our murderous government to take action and listen.”
Activists are also facing the possibility of being jailed for contempt of court after National Highways obtained an injunction on Saturday evening banning the group from blocking the M25.
If they are found to have breached the injunction they could face up to two years in prison, an unlimited fine and the seizure of assets.
The two-pronged legal attack is part of a concerted attempt by the authorities to derail Just Stop Oil’s campaign.
But after 23 activists were removed from the M25 and arrested by officers from six police forces, the environmental group issued a statement saying the daily disruption would continue. “This is not a one day event, expect us every day and anywhere… Our supporters will be returning – today, tomorrow and the next day – and the next day after that – and every day until our demand is met: no new oil and gas in the UK.”
Matt Twist, the Met’s Assistant Commissioner, said the demonstrations amounted to “criminality” with the intention of disrupting thousands of people’s lives.
He said: “This isn’t protest, this is criminality where people are taking extremely hazardous steps disrupting the M25. This action is grossly disproportionate to any legitimate aim that this group may have. This is criminality and we’ll treat it as such.”
The motorway, which is Britain’s busiest, had to be closed in parts for more than an hour causing massive tailbacks and gridlock.
Police have made almost 700 arrests since Just Stop Oil began its campaign in September with more than 100 people being charged. Those blocking roads in London were arrested on suspicion of obstructing the highway which carries a maximum sentence of six months, but it is hoped the approach will provide more of a deterrent.
Mr Twist said: “Our intention is to bring to justice those responsible as quickly as we can.”
In a statement last night, Just Stop Oil vowed to continue disrupting the M25. A spokesman said: “We ask everyone who is planning to use the M25, or associated roads, from 7am tomorrow to be prepared for closures and severe delays.
“Once again, we urge National Highways to implement a 30mph speed limit across the entire M25 in line with their responsibility to keep the public safe.
“To the Government we say, yet again, what did you expect? Under British law we have the legal right, and a moral duty, to disrupt to prevent this great harm – the right of necessity.”