AS THE UK’s North Sea gas production diminishes, new players will replace the oil majors in supplying gas to the UK. With the development of gas transportation infrastructure by 2007, gas will be imported from the east direct to the UK, and this will allow Germany’s E.ON Ruhrgas and Wingas access to the UK market, possibly replacing existing industrial gas suppliers, such as BP, Total, and Shell.
The UK is to move from a position of self-sufficiency to net gas import status by 2006 as piped gas from Belgium, Netherlands, and Norway, and global LNG volumes replace domestic production. To facilitate the transportation of large volumes of gas, significant investment in transportation infrastructure is being undertaken, alongside the provision of third-party access to gas networks and the development of trading hubs.
Two key developments are the Balgzand-Bacton (BBL) gas interconnector between Netherlands and the UK, and the development of a trading hub in the Netherlands, known as Eurohub, which is being supplemented by the building of a high calorific gas link between Netherlands and Germany. Once these projects are completed, the direct link between eastern Europe and the UK will be in place, enabling German gas wholesalers, such as E.ON Ruhrgas and Wingas, and other producers elsewhere in the region, principally Russia's Gazprom, to transport gas directly from eastern Europe to the UK.
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