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Insider UK
Insider UK
National
Peter A Walker

Union calls for ring-fenced UK share as North Sea gas exports double

A new report from the GMB Union has claimed that exports of North Sea gas more than doubled at the end of the year, and therefore is calling for emergency legislation to ring fence a fair share to ease the cost of living crisis.

The call comes as ministers prepare to publish an Energy Supply Strategy before the end of the month.

The UK exported 32.5 GWh of natural gas in the fourth quarter of 2021 - up 159% on the year before - as prices were higher and Norwegian exports were lower.

In the report, which has been sent to ministers, GMB outlines how the UK sells North Sea gas overseas each year, while households and industries struggle with rapidly rising bills.

GMB's proposed ‘fair share’ policy would see the UK follow the path of many gas producing countries and ring fences some domestic supply for the domestic market.

The scheme would create a reserve of North Sea gas that only domestic purchasers could bid for, addressing the international price pressure on UK households and industries.

The report stated that setting aside just 15% of production could meet the needs of 90% of energy-intensive industries’ gas needs; or the combined gas needs of the chemicals, construction, automotive and food manufacturing, glass and ceramics, and metals (including steel) sectors.

The cap on exports could reduce domestic prices, while meeting trading agreements with partner nations during the current international crisis.

GMB also called for a long-term domestic gas policy linking use and production to the highest environmental and labour standards – instead of a net zero transition that is reliant on gas from Qatar and Russia.

Andy Prendergast, GMB national secretary, said: “At a time of rapidly rising international tensions, we have to secure the supply of vital natural resources.

“Action must be taken to secure our energy supply and provide stability and reassurance to households and businesses.

“As a gas-producing nation, the UK is an international outlier by not having domestic limits in place – it’s time for a national conversation about an industry that can make an immediate contribution to lifting the cost-of-living crisis. ”

He added: “In the long-term, it would be morally repugnant to reach net zero by winding down our vital industries while importing gas from despotic regimes. ”

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