New data from the UK Government has underlined the need to maximise North Sea gas production as imports surge and domestic production drops.
The latest UK energy trends report for January-March shows imports of gas increased by a 19% annually, while domestic production is now down by 20% compared to pre-pandemic levels (2019).
Imports of liquefied natural gas (LNG), which the NSTA regulator states is 4x worse for the environment than domestic gas, increased by 42% compared to the same period in 2024, while imports also rose from other regions including Qatar.
Gas demand over the quarter increased 8.5%, the highest amount for any quarter in the UK since 2021.
The demand was driven by the lowest wind speeds for a Jan-Mar quarter since 2010, coupled with colder temperatures. Electricity generation from wind power subsequently dropped 13%.
Overall, the UK’s dependency on imports for its energy needs was 47% during the quarter.
Domestic oil production is meanwhile down 40% on pre-pandemic levels.
The data shows the winding down of the Grangemouth refinery saw production of UK oil products dropped 7.1% over the quarter, while imports increased.
North Sea gas has accounted for around half of domestic demand for the last decade, however policies such as the windfall tax are harming investment appetite and risk tipping the balance towards import reliance.
Russell Borthwick, Chief Executive of Aberdeen and Grampian Chamber of Commerce (AGCC), said: “This data evidences the urgent need to realise the potential of our domestic resources in the North Sea, rather than rely on costly, carbon heavy imports which support no UK jobs.
“At a time when we are seeing job cuts in the oil and gas sector and policy barriers to the delivery of renewables, we need to make the right decisions for a managed transition.
“Earlier this week a Westwood Energy study showed there is up to 7.5 billion barrels of oil and gas which could still be produced in UK waters; we urge the UK Government to pursue that economic prize which will help us protect jobs, reduce emissions, and mitigate imports, which can only happen with an immediate end to the Energy Profits Levy.”