UK's Cluff Sees Key Role for Gas In UK Mix
North Sea gas-focused Cluff Natural Resources (CNR) has stressed the key role natural gas will play in the UK’s energy mix, even in a 2050 net-zero emissions scenario.
In financial results published on September 16, company chairman Mark Lappin noted that the UK Committee on Climate Change (CCC)’s April report accepted that hydrocarbons would still be consumed at a level equal to 70% of current demand beyond 2050.
“The key difference between the Climate Change Committee and our own view is that instead of becoming increasingly reliant on imports from overseas we should be focusing on national production and consumption of natural gas from the UKCS,” Lappin explained. “A domestic supply of natural gas is good for jobs, good for tax receipts and the balance of payments, as well as being better for the environment compared with importing gas from as far afield as the Middle East and South America.”
CEO Graham Swindells added that the outlook for the UK’s oil and gas industry was improving, “as a result of the successful commissioning of projects, ongoing cost reduction and improvements in operational performance, as well as an increasingly attractive and supportive fiscal and regulatory regime.”
CNR, which is exploring for and developing gas in southern and central North Sea, saw its first-half, pre-tax losses double yr/yr to £1.56mn ($1.94mn) on impairment charges and higher spending. This year it has farmed out a 70% stake in its Pensacola prospect and a 50% interest in its Selene prospect to Shell in two separate deals.