Gas Crisis: Beach reduction from Associated Gas - question to minister

12.51.45pm GMT Thu 15th Dec 2005

The Independent Energy Scrutiny Panel has released an analysis of reduction of North Sea Gas supplies which points to the main reduction being in "associated gas".

"'Associated Gas' is that gas that comes from mixed oil/gas fields. We are concerned that suppliers may be reducing the amount of gas provided to facilitate an increase in the amount of oil provided given higher oil prices. I have asked questions of the minister as to what is happening about this. The UK faces a gas supply crunch and if suppliers are supplying oil rather than gas we should be encouraging them to supply gas.", said John Hemming Chairman of the IESP.

"Analysing the top 50 days of this winter and last winter there has been a 17% reduction in associated gas, but only a 3% reduction in dry gas. In particular Shell's St Fergus terminal has seen a 36% reduction in gas production. If it is possible to reshift the balance of oil/gas production that would assist in terms of minimising the supply difficulties in the gas market."

"I have asked questions to the minister for Energy about these issues."