EurOil: UK looks at allowing lower-calorific gas into system
The UK is looking to ease rules on the quality of natural gas in an effort to incentivise the development of extra North Sea supply, the Telegraph gas reported.
The proposal would allow lower-calorific gas to be pumped into the UK’s pipeline system, meaning it can maximise resource recovery. Business Secretary Kwasi Kwarteng told a conference in London over the weekend that the government was “exploring domestic gas storage options carefully,” including “potential regulatory options to extract more gas from existing fields.”
Industry experts estimate that around 500bn cubic feet (14.2bn cubic metres) of low-calorific gas located mostly in the south North Sea could be exploited if the rules were changed, and tapping even a small amount of this gas would help alleviate high energy costs for UK businesses and households.
Various North Sea operators have urged the government to allow more low-calorific gas to enter the system. In September last year, Neptune Energy said the change would allow the company to safely produce 13% more gas at its Cygnus gas field.
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