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UK Moves to Protect Gas Supply as North Sea Output Declines

The UK government is considering financial and regulatory measures to protect the country’s gas supply as production from the North Sea continues to decline.

The Department for Energy Security and Net Zero (DESNZ) said it would explore commercial support for existing gas storage facilities and two gas interconnectors as their profitability and future bookings weaken.

The move follows a government consultation on the future of the UK gas system, with respondents raising concerns about maintaining sufficient infrastructure as domestic gas production falls and reliance on imports grows.

The government said it is looking at ways to ensure the gas network can cope with periods of unusually high demand and unexpected disruptions to supply.

Energy Minister Michael Shanks said the government would work to reduce regulatory barriers while examining possible support schemes to keep existing gas capacity available.

Officials are also assessing options for expanding gas import and storage capacity, including a floating storage and regasification unit (FSRU) and a strategic gas storage reserve.

However, the government acknowledged that establishing either option could cost billions of pounds over a 25-year period.

The consultation also identified regulatory hurdles, grid connection difficulties and uncertainty over future investment as challenges that could discourage new gas infrastructure projects.

The consultation, which ran from November 26, 2025, to February 18, 2026, received 115 responses. DESNZ said it would publish its full response at a later date.

The development comes amid continued uncertainty over the future of the Rosebank and Jackdaw oil and gas projects. Consultations on both developments have closed, with decisions expected later in the year.

The UK government maintains that North Sea energy production remains important to jobs, economic growth and national energy security even as the country advances its energy transition.