BP North Sea Gas Network Shutdown Can't Be Postponed - Source
January 10 2010 - 10:52AM
Dow Jones News
The planned closure of a large gas network owned by oil giant BP
PLC (BP) cannot be postponed, a person familiar with the matter
said Sunday, despite the country's gas supplies coming under
increasing pressure amid the continued cold weather.
The Southern North Sea gas pipeline, which brings ashore around
1% of U.K. domestic gas supplies, will be shut down for maintenance
next week in order to bring new fields onto the pipeline, and the
work is essential, this person said.
The U.K. is currently in the grip of the coldest winter in 30
years and sub-zero temperatures triggered a surge in U.K. demand
for natural gas for heating and power generation Monday, forcing
the operator of the U.K.'s natural gas grid to issue an alert that
demand was about to outstrip supply in the system.
The U.K. government said at the time there was no risk of
consumers being cut off.
The U.K. has just under four billion cubic meters of storage
capacity, just one fifth of Germany's, at 19 billion cubic meters,
and less than a third of Italy's 14 billion cubic meters.
The lack of stored reserves leaves Britain exposed to competing
with other countries for gas imports during periods of strong
demand across Europe, and having to pay higher prices to lure it
there.
-By Kathy Gordon, Dow Jones Newswires; 44-207-842-9293; kathy.gordon@dowjones.com
Angela Henshall contributed to this article
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