In a detailed new analysis prepared for Offshore Energies UK (OEUK), energy consultancy Westwood Energy highlights the ongoing importance of UK-produced natural gas in ensuring the nation’s energy security — even as the transition to low-carbon power gathers pace. The report lays bare how domestic supplies underpin reliable energy delivery, support jobs across the country and reduce dependence on imported fuels.
A Domestic Backbone Still Underpinning Supply
Despite the growth of renewable generation, natural gas remains central to the UK’s energy mix, particularly for heating and electricity. Forecasts suggest that demand will remain around 53.6 billion cubic metres (bcm) in 2026 and soften only marginally by 2035, underlining that gas will continue to play a substantial role for years to come.
Between 2020 and 2024, domestic production accounted for about 43 per cent of the UK’s annual gas supply, with piped imports from Norway making up roughly 35 per cent and liquefied natural gas (LNG) from overseas roughly 21 per cent.
Westwood’s data emphasises that if UK production declines further without replacement, the shortfall would have to be met with additional LNG imports — exposing the country to price volatility and geopolitical risk.
Economic and Environmental Advantages
Producing gas domestically delivers more than reliable supply. The sector supports around 115,000 jobs across offshore operations, supply chains and onshore terminals, representing skilled employment spread from Scotland to the south of England.
Environmental considerations also feature prominently. According to Westwood’s analysis, UK-produced gas has a lower greenhouse gas intensity — roughly 28 kg CO₂ per barrel of oil equivalent — compared with 85 kg CO₂/boe for LNG imports. Some newer UK developments have emissions profiles closer to those of piped Norwegian gas, which sits around 8 kg CO₂/boe, making local output comparatively cleaner in lifecycle terms.
This gap matters: increasing reliance on imported LNG at scale could inadvertently increase the UK’s overall carbon footprint even as national climate goals remain in focus.
Challenges: Investment and Infrastructure
While domestic gas remains important, the ability to sustain production is under pressure from a combination of fiscal conditions and declining investment. Higher tax levies on oil and gas producers, such as the enhanced Energy Profits Levy, have dampened investment appetite and amplified the natural decline in mature North Sea fields.
Domestic gas production flows through a network of processing terminals and pipelines operated across the UK, from Shetland in the north to Bacton in the southeast, feeding into the National Transmission System that supplies industry, homes and power stations alike.
This integrated infrastructure — part of the backbone of the UK energy system — is vulnerable if investment lags. Loss of capacity or facilities not only affects supply directly but can have ripple effects across energy supply chains and regional economies.
Policy at a Crossroads
Westwood’s insight comes at a time when policymakers are wrestling with how to balance energy security, climate commitments and economic growth. While the UK government has pledged to lead on net-zero emissions, it has also acknowledged the need for reliable fuel supplies during the transition — a sentiment echoed in other recent strategic analyses.
This debate centres on whether continued domestic gas production can coexist with ambitious clean power targets — and how best to manage the pace of change to protect energy reliability and jobs without stalling climate progress.
Securing a Balanced Transition
The Westwood report reinforces that, for the foreseeable decade, UK-produced gas will remain a cornerstone of energy security. Maintaining a competitive investment environment, managing the decline of mature fields responsibly, and integrating gas into a broader energy strategy that includes renewables, hydrogen and carbon capture will be essential to meeting both economic and climate goals.
In a world of global energy uncertainty, securing a resilient, diversified domestic energy base — rather than increasing dependency on imported fuels — will continue to influence UK policy and industrial strategy well into the 2030s.