Gas storage licensing could boost investment

A new licensing scheme for offshore gas storage could encourage investment in UK energy infrastructure.

The Department of Energy and Climate Change has revealed that an area of up to 200 miles around Britain could be used for offshore gas storage and importation projects under the proposed system.

The new system will encourage investment and give companies certainty about the consents required for offshore gas storage and unloading

Mike O'Brien

Energy Minister

A consultation document will be launched by the Government tomorrow (February 17th) to examine the regulatory framework for encouraging investment in the sector, with the aim of offsetting the forecasted decline in production from the UK's continental shelf.

Mike O'Brien, Energy Minister, said there are "promising opportunities" to be found in Britain's depleted oil and gas fields, as well as new salt caverns, but the regulations concerning their use need to be simplified.

The Minister added: "The new system will encourage investment and give companies certainty about the consents required for offshore gas storage and unloading.

Earlier this month, industry body Oil & Gas UK called on the Government to take steps to support investment in the sector, claiming being able to exploit its own resources will allow Britain to limit the damage caused by the economic downturn.