Offshore staff
LONDON – Britain’s exit from the European Union appears unlikely to impact the strong energy industry between the two, according to GlobalData.
Natural gas from North Sea pipelines crossing Belgium and the Netherlands accounted for around 13% of total natural gas imports into the UK in 2018, the consultant said.
In addition, UK government data shows that UK gas exports to Ireland rose to a four-year high last November 2019 and look set to continue rising as Ireland’s domestic supply declines.
Daniel Rogers, oil and gas analyst, said: “It is highly likely that the UK will aim to prevent any disruptions to oil and gas arrangements currently in place with EU countries. However, should a devaluation of Sterling against the Euro occur post-Brexit, imported EU-piped gas would become more expensive for the UK - having a knock on effect on the consumer.
“That being said, alternative avenues of gas imports such as international liquefied natural gas (LNG) create flexible alternatives of energy security for the UK and the gas market will continue to remain competitive while playing a vital role in the UK’s energy mix.”
UK exports to EU countries in 2018 accounted for 63% of Britain’s total crude oil exports, most of the value derived from Germany and the Netherlands.
Rogers said: “In the North Sea, there are a number of oil and gas fields either straddling country borders or utilizing cross border infrastructure.
“Past collaborative efforts particularly between the UK, Norway, and the Netherlands have enabled cross-border developments and generated value for the UK oil and gas industry, something that is unlikely to change as a result of Brexit.”
02/03/2020
