Dan Byles – 2014 Parliamentary Question to the Department for Energy and Climate Change

The below Parliamentary question was asked by Dan Byles on 2014-06-04.

To ask the Secretary of State for Energy and Climate Change, what recent assessment he has made of the potential need for additional gas storage capacity in the UK; and if he will make a statement.

Michael Fallon

The Department commissioned independent analysis by Redpoint Energy on the case for intervention in the UK gas storage market.

This cost-benefit analysis did not support intervention to deliver additional gas storage capacity within the UK due to a combination of low risk, poor rates of return for the taxpayer, and the risk of unintended consequences within the market. A written statement to Parliament on gas security of supply policy and gas storage was made by my rt. Hon. Friend the Secretary of State on 4 September 2013.

The market continues to bring forward gas storage projects: two storage facilities have recently been completed and two more are currently under construction.