LNG And UK Energy Security

The Oxford Institute for Energy Studies (OIES) is delighted to partner with UKERC in the publication of this paper on the role of LNG in UK energy security. Even before the war in Ukraine which began in February 2022, the UK had become increasingly reliant on LNG imports to support a domestic gas industry where production is in long-term decline and where storage is in short supply. The risks of this strategy have been illustrated by the turmoil in the global gas market caused by the sharp reduction in Russian pipeline gas exports to Europe.

The UK, with its ample LNG import facilities, has not been short of gas and indeed has even acted as a land-bridge to continental Europe via its interconnectors, but it has suffered from high prices and the risks associated with increased global competition in a tight market. This report, written by Marshall Hall, who is a Senior Research Fellow at OIES, addresses the
challenges that this new environment poses and provides recommendations on policy and regulation that can help to provide greater flexibility and security in a gas market where the need to secure supply over the longer term can be hampered by market design and by the risks inherent in the energy transition. We think that it is an important contribution on a vital topic as the UK plans its energy strategy for the next decades.

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