Britain has struck a last-minute deal for extra gas pipeline capacity from Belgium to secure this winter's supplies, illustrating the growing pressure on its energy system. National Gas, which owns and runs Britain's gas pipeline network, agreed with the owners of the Interconnector gas pipeline to reverse planned capacity cuts immediately.
Ofgem, Britain's energy regulator, said the country could otherwise have faced a negative supply margin, meaning energy supply would not meet demand, on a very cold day when key infrastructure was not operational. UK gas production has fallen significantly in recent years, while peak daily demand is falling more slowly than annual demand. Ofgem said such scenarios were very unlikely but their potential consequences were significant. It estimates the deal will cost households £1.19 each a year.
The Interconnector pipeline runs between Zeebrugge in Belgium and Bacton, Norfolk. Interconnector, 76 per cent owned by Belgian infrastructure group Fluxys, will reinstate capacity to 27.8GW for this winter, after cutting it to 16.5GW from October 1 due to high fixed costs of running the system against uncertain demand.
Gas accounted for about 35 per cent of total energy demand in 2025, according to official statistics. Domestic production covers just under half of UK demand, with the rest met by imports from Norway, continental Europe and the US. Separately, the UK approved the Jackdaw gasfield in the North Sea, while Energy Secretary Miatta Fahnbulleh said she, not Prime Minister Andy Burnham, would decide on the Rosebank oilfield.
Source: Financial Times Companies · Summarized by HeadlinesBriefing