Question

To ask the Secretary of State for Energy and Climate Change, if he will make an assessment of the implications for his policy on the need for additional gas storage capacity in the UK of recent events involving Russia and Ukraine; and if he will make a statement.

We have no plans to reassess the need for additional gas storage capacity in the UK in the light of events between Russia and Ukraine. The Department commissioned from Redpoint Energy analysis on the case for Government support for additional gas storage in the UK, which was published in September 2013. This cost-benefit analysis did not support intervention to deliver additional gas storage capacity due to a combination of low risk, poor rates of return for the taxpayer, and the risk of unintended consequences within the market.

Disputes between Russia and Ukraine affecting gas supply to Europe do not change this stance. Previous analysis has demonstrated that the UK gas market is resilient to all but the most unlikely combination of high-demand conditions and supply disruption. The UK has a diverse range of gas suppliers and routes to market and receives less than 1% of its gas from Russia.