UK Doomed to Increase Reliance on Gas Imports, Says Centrica

The United Kingdom will progressively increase its reliance on gas imports in the next 6 years, with local production accounting for 30% of its needs, Centrica warned on Wednesday.

“Political uncertainty is the enemy of investment. As a result, investment in new UK generating capacity has virtually ground to a halt,” Sam Laidlaw, Chief Executive of Centrica, said during a conference in Texas, as reported by a note released by the company.

Laidlaw said the company see in shale gas a significant contribution to the country’s energy mix. Centrica’s CEO also warned politicians of security of supply issues.

According to the data mentioned by the company, an estimated 3.7 Gigawatts of coal-fired generating capacity would be shut down as a result of European directives to curb emissions by the end of 2015.

“In primary energy, the UK’s production of gas is falling rapidly. North Sea oil and gas output has fallen by 38 per cent over the last three years. By 2020 we will be reliant on imports to meet 70 per cent of the country’s gas needs. So when it comes to security of supply, there is a pressing need for solutions,” Laidlaw added.