UK to speed up issuance of North Sea gas licenses

During the issuance of gas licenses expected this week, the British government will give priority to applications for the development of new gas fields in the North Sea. As stated in an interview Financial Times Andy Samuel, CEO of the UK’s North Sea Transition Authority (NSTA), will issue a total of more than 100 permits.

The British government has pledged to boost North Sea gas production to deal with the energy crisis amid curtailed gas supplies from Russia. “In these unusual times, the security of energy supply is of great concern,” the head of the NSTA said, emphasizing that they “will do everything possible to increase domestic production.” However, he warned that the issuance of licenses, which is the first time in three years, will not significantly change the UK’s dependence on energy imports.

It is expected that in the next three decades the volume of energy imports will grow even against the backdrop of falling demand for hydrocarbon fuels in the world. According to Andy Samuel, the issuance of new mining licenses will only change the situation “on the periphery.” Since the North Sea is already very well explored in terms of possible oil and gas deposits, he said, “it is unlikely that we will suddenly have a situation where we will suddenly increase production.”

Currently, the North Sea produces a volume of gas that provides about 40% of the UK’s needs. According to NSTA estimates, this share will decrease to 30% by 2030. In 2021, 29 billion cubic meters of gas and 45 million tons of oil were produced in the North Sea.

Alena Miklashevskaya