Select Committee on Trade and Industry Written Evidence


Annex B.2

EXPANSION OF GAS IMPORT/STORAGE INFRASTRUCTURE
Details of Project CapacityYear
First stage expansion of Bacton-Zeebrugge pipeline 22mcm/d2005
First stage of Isle of Grain LNG facility 12mcm/d2005
First gas from Humbly Grove storage facility 280mcm2005
Langeled South pipeline expected to be operational Up to 70mcm/d2006
Netherlands BBL pipeline expected to be operational 44mcm/d2006
Second stage of Bacton-Zeebrugge pipeline 19mcm/d2006
Milford Haven LNG facility expected to be complete 16.5mcm/d2007
First gas from Preesall storage facility 200mcm*2007
Aldbrough storage facility expected to be complete 420mcm2007
Byley (Cheshire) storage facility aimed to be complete 170mcm2007
Separate Milford Haven LNG facility to be complete Up to 54mcm/d2007
Welton storage facility expected to be operational 420mcm2007
Second stage of Isle of Grain LNG facility 26mcm/d2007

mcm/d = million cubic metres per day.

mcm = million cubic metres.

*  when completed in 2010, Preesall will have a storage capacity of 1.7bcm.

  Please note that projects are at various stages of planning or construction and are therefore subject to some uncertainty. Also, the figures are approximations and are therefore subject to change as estimates are revised as it becomes clearer what the capability of each facility is.

  By splitting these projects into (a) import facilities, where some have associated storage, and (b) storage only facilities, it is possible to estimate daily deliverability. If all the projects listed above go ahead then, by 2007 there will be an import capability of up to 219.5 mcm/d and a separate storage capability of up to 105mcm/d. According to the latest JESS report, the forecasted average January (peak demand) in 2007-08 is approximately 420mcm a day. Therefore if all the import facilities come on stream, this equates to approximately 52% of demand over this period, with significant further capacity made available through storage. These facilities will provide greater security of supply through a wider diversity of sources, leading to strong competition in the market, and lower prices to the consumer.

  Further details of these projects and their timing is contained in the November 2004 Report of the Joint Energy Security of Supply Group (JESS). JESS is a joint DTI/Ofgem group which monitors the situation and provides information to ensure the market is aware of developments and opportunities.

  (Refers to para 6 of main text. These tables show that the UK had the lowest gas prices in the UK except for an 18 month period, July 2001 to December 2002).


 
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