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Security of Supply

The hon. Gentleman is absolutely right. That is exactly the issue at the heart of the review—not only what we are sourcing from abroad but where we are sourcing it from. As for gas, Norway and the Netherlands are hardly unstable countries, and they will supply the major part of it. None the less, that is an important element in the review, and I agree with what the hon. Gentleman said. The investments will increase supply. But, given the background of our increased reliance on imported gas over the next 15 to 20 years, and the important investment decisions that multinational companies will be making on where to invest, in which the price of energy will be a crucial factor, we cannot rely on those developments alone. We need to remain alert to new ways of increasing supply, and be quick to build on new developments in the way in which we supply, import and store gas. Rapid advances in technology are taking place, with the potential to make a real difference. Britain’s legal framework needs to be capable of dealing with those developments. Today I can announce new measures to increase the potential for gas storage in the UK. First, we will revise the legal regime covering new offshore gas storage and offshore gas unloading. When parliamentary time is available, I will introduce legislation to achieve that. Over the next decade, companies will be able to use new technology to create salt caverns offshore and store gas in them. There is strong potential for gas storage in a number of geological formations offshore, in areas such as the Irish sea and the southern North sea. That could significantly add to the UK’s gas supply capacity. There is already commercial interest in creating those new facilities. We will ensure that the right framework is in place to allow them to be created. The new framework will also facilitate innovative proposals for unloading liquid natural gas tankers at offshore mooring buoys connected by pipeline to the shore. Secondly, we will also examine the onshore consents regime, with the possibility of further legislation if appropriate. This work will move forward in parallel and in conjunction with the energy review, and the Barker review of land use planning, established by the Chancellor and Deputy Prime Minister.