The UK's energy regulator, Ofgem, has approved a deal to maintain the country's gas import capacity from Europe, ensuring flexibility during high-demand periods. The agreement allows Interconnector Limited to reinforce gas import capability through the Great Britain-Belgium interconnector, a critical link for maintaining energy resilience.
Ofgem emphasized that while most of the UK's imported gas comes from Norway and other LNG exporters, the European interconnectors play a vital role during extreme weather or peak demand. The regulator noted that import capacity through these interconnectors has declined due to reduced commercial incentives and technical limitations, prompting the need for this agreement.
Glenn Bryn-Jacobsen, Director of Energy Systems and Resilience at National Gas, stated that preserving this import capability is essential for strengthening the gas system's ability to respond to unexpected challenges. Ofgem is also consulting on the regulatory mechanism for recovering the costs associated with this agreement.
Separately, the UK government approved the long-delayed Jackdaw gas field, marking the first new North Sea project since the Iran war drove up energy prices. The field could begin supplying gas to British homes and businesses as early as later this month.