Britain has struck a deal to preserve a major gas import route from Belgium this winter, reversing a planned cut in capacity, as falling North Sea production leaves the country increasingly dependent on supplies from overseas.
The agreement between National Gas and Interconnector Ltd will keep import capacity on the pipeline between Zeebrugge and Bacton in Norfolk at around 27.8GW, rather than allowing it to fall to roughly 16.5GW from this month.
The 235km pipeline is one of Britain’s main physical links to continental European gas markets and can move supplies in either direction depending on demand and prices.
Interconnector had previously planned to reduce its import capability because of high operating and maintenance costs and weaker commercial demand for flows into Britain. Capacity had already been cut from around 33.5GW to 27.8GW before a further reduction to 16.5GW was due to take effect this month.
Ofgem has now approved the agreement needed to maintain the higher level, with National Gas expected to recover the cost through charges on gas consumers.
For households that will work out at around £1.19 a year for five years, or less than 10p a month.
The regulator says the arrangement is effectively an insurance policy for the gas system, preserving additional import capacity that could be called upon during an exceptionally cold winter or if another major source of supply failed.
It does not mean Britain is expected to run short of gas and it does not guarantee gas will actually flow through the pipeline. The deal simply keeps the capacity available if traders need to use it.
Ofgem’s Director of Energy Systems Management and Security Jack Presley Abbott said Britain’s gas system remained secure but the amount of gas that could be imported from Europe had fallen significantly.
“Maintaining these important gas links is important as longer-term changes to the energy system continue,” he said.
The decision comes as Britain’s domestic gas production continues to decline and its reliance on imported energy grows.
National Gas has warned that while the market should continue to meet normal demand, some extreme combinations of cold weather and infrastructure failure could leave the system with less spare capacity than in the past.
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