UK's North Sea gas infrastructure must compete with LNG

After 30 years of self-sufficiency, the UK will soon join its European neighbors as a net gas importer. UK gas demand will rise to 120 billion cu m in 2010 from current levels of 110 billion cu m, while indigenous production by 2010 will only be around 70 billion cu m. Some reports suggest that up to 50% of gas consumed in the UK by 2010 may be imported. The UK is facing some tough choices to meet this supply-demand gap. For gas infrastructure operators, managing the balance of capacity, contract, and customer demand is becoming more complex as the industry landscape matures. The UK gas market will see increasing competition between piped gas imports and LNG imports, with significant implications for UK gas infrastructure. The world's gas suppliers are lining up to supply the UK market at an increasing pace.