New data from the UK Government underline the need to maximize North Sea natural gas production as imports surge and domestic production drops, according to the Aberdeen and Grampian Chamber of Commerce (AGCC). The latest UK energy trends report for January-March 2025 shows imports of gas increased by a 19% annually, while domestic production is down 20% compared with pre-pandemic levels (2019).
LNG imports increased by 42% compared with the same period in 2024. Gas demand over the quarter increased 8.5%, the highest amount for any quarter in the UK since 2021. The demand was driven by the lowest first-quarter wind speeds since 2010, coupled with colder temperatures. Electricity generation from wind power dropped 13%. Overall, the UK used imports to meet 47% of its energy needs during the quarter.
Domestic oil production is down 40% from pre-pandemic levels. Data show the winding down of Petroineos Refining Ltd.’s 150,000-b/d Grangemouth refinery (OGJ Online, May 2, 2025) saw production of UK refined products drop 7.1% for the quarter, while imports increased.
North Sea gas has accounted for around half of domestic demand for the last decade, however policies such as the windfall tax are harming investment appetite and risk tipping the balance towards import reliance.
“At a time when we are seeing job cuts in the oil and gas sector and policy barriers to the delivery of renewables, we need to make the right decisions for a managed transition, said Russel Borthwick, AGCC chief executive. “Earlier this week a Westwood Energy study showed there is up to 7.5 billion barrels of oil and gas which could still be produced in UK waters; we urge the UK Government to pursue that economic prize which will help us protect jobs, reduce emissions, and mitigate imports which can only happen with an immediate end to the Energy Profits Levy.”
