Look what’s in store - gas

Jan 14 2010 by Kelley Price, Evening Gazette

HUGE natural voids in the rock strata beneath the Tees Valley could help solve the UK's gas supply problems, according to the Tory party.

James Wharton, Conservative candidate for Stockton South, is calling for a geographic survey of old salt mines and cavities beneath the Tees estuary.

The Government has insisted the UK’s gas supply is resilient - and it’s for the market itself to decide how much investment should be plunged into storage. But sufficient storage is important because it allows energy companies to buy gas at times of low demand, when prices are lower, and release it at peak times, such as the recent winter freeze.

Last week, while deep freeze Britain battled with a fast dwindling supply, the Crown Estate - manager of the Queen’s property empire - faced its own icy blast from the gas industry over a reported 300% increase in rent for using depleted gas fields under Crown land for storage. Such a move, the industry says, could scupper the UK’s bid to boost its reserve capacity.

Mr Wharton said the Tees Valley could have the potential to accommodate as much as 5% of the UK's storage needs, and such a project would create a huge economic boost for the area.

"We believe the Tees Valley is unique in having both the high skills base and what appears to be the geological foundations to implement such a scheme," he said.

"The Government has a potential opportunity here, not only to invest in the future economy of the Tees Valley and create jobs, but to resolve some of the big energy security challenges we’ll face in years to come.

"The UK’s storage facilities are woefully inadequate. We could become increasingly reliant on countries such as Russia for our gas, particularly in this uncertain economic climate."

According to National Grid data, the UK can store 4.5 billion cubic metres of gas and current supply levels sit just below 3 billion cubic metres. The Government is considering 12,000 megawatts (or 12GW) of new gas fired generation and since January 2005 has consented to 13,000 megawatts of new gas-fired power generation.

A spokesperson for the Department of Energy and Climate Change (DECC) said: "The UK has a very resilient as system. We still get about half of the gas from our own back yard and the rest from a range of sources."