Cyprus-Forum.com

by **Get Real!** » Fri May 24, 2013 3:03 pm

UK gas supply six hours from running out in March

Britain came within six hours of running out of natural gas in March, according to a senior energy official, highlighting the risk of supply shortages amid declining domestic production and a growing reliance on imports.

“We really only had six hours’ worth of gas left in storage as a buffer,” said Rob Hastings, director of energy and infrastructure at the Crown Estate, the property portfolio managed on behalf of the Queen. “If it had run any lower it would have meant . . . interruptions to supply.”

The Crown Estate owns the rights to gas storage sites under the UK seabed including Rough, the UK’s largest gas storage facility. Rough is leased by Centrica, owner of British Gas.

British wholesale gas prices surged to a record in late March, after a technical fault temporarily shut down one of the main import pipelines. The disruption coincided with a period of low gas storage levels as persistent wintry weather drove up demand for gas.

The price spike triggered fears that household energy bills could rise this year. SSE, one of the big six power suppliers, warned on Wednesday that consumers should brace themselves for higher bills “unless there is a sustained reduction in prices in wholesale gas and electricity markets”.

Mr Hastings backed that view: “We are likely to find gas prices rise by a lot in a year.”

The March price volatility highlighted Britain’s vulnerability to supply disruptions as its own gas production declines and it becomes more dependent on imports, especially pipeline gas from Norway and the Netherlands. The UK, which once received almost all its gas from the North Sea, became a net importer in 2004.

The country also has relatively low levels of gas storage. Some forecasts suggest that storage capacity will have to double by 2020 to ensure security of gas supply in winter, when demand peaks.

Mr Hastings’ view on the danger the UK faced in March is, however, disputed by others. “It is true that there wasn’t a huge amount of storage left – but there never is at the end of winter,” said Nick Winser, executive director of National Grid. “The UK has low storage levels by international standards, but there is a large diversity of [supply] sources. Our gas supply resilience is quite substantial.”

He added that the market worked as it should in March, with rising prices attracting supplies from other sources such as LNG.

According to Mr Winser, March gas demand was running at 350-370m cubic metres a day, while the UK’s import system was capable of delivering 530 mcm/d without storage.

http://www.ft.com/cms/s/0/6829d914-c39c ... z2UCyIMeVw

by **Get Real!** » Fri May 24, 2013 3:04 pm

I foresee Cyprus supplying in the future in return for them relinquishing the bases… but you gotta catch them when they’re really, really desperate…

by **RichardB** » Fri May 24, 2013 3:40 pm

6 hours !!! Luxery!!! I've normally got 10 minutes left before i top up me meter

by **GreekIslandGirl** » Tue Nov 24, 2015 7:55 pm

Get Real! wrote:I foresee Cyprus supplying in the future in return for them relinquishing the bases… but you gotta catch them when they’re really, really desperate…

British Gas interest in Cyprus energy rights

Noble Energy has made a request to the government in Nicosia to sell to British Gas 35 percent of its energy rights in block 12 of the Cyprus exclusive offshore economic zone.

Energy Minister Yiorgos Lakkotrypis said the rights include the Aphrodite gas field which contains an estimated 4.5 trillion cubic feet of natural gas.

"Noble Energy proposes to remain operator of the offshore filed, with Noble Energy and BG holding 35 percent each and Israel's Delek Drilling Limited Partnership and Avner Oil Exploration Limited Partnership holding 15 percent each," Lakkotrypis said.

He added the request requires approval by the government and it will be submitted to the Council of Ministers for discussion.

(Here's your chance to influence foreign policy, GR! )

Lakkotrypis welcomed the request, however, saying was a very significant development "which indicates a vote of confidence in Cyprus' Exclusive Economic Zone (EEZ) and its prospects, from a company with huge technical and commercial-economic potential."

FAMAGUSTA GAZETTE•Tuesday, 24 November, 2015