Controversy Surrounds UK LNG Import Plans Amid Falling North Sea Output

The UK government is reportedly exploring multi-billion-pound investments in new liquefied natural gas (LNG) import infrastructure to counter declining domestic gas production. This potential move has sparked sharp criticism from industry groups, who argue that the country’s current offshore policies are undermining energy security.

The Aberdeen & Grampian Chamber of Commerce (AGCC) warned that expanding LNG imports highlights a growing and risky reliance on foreign energy. AGCC Chief Executive Russell Borthwick pointed out the contradiction in government policy, noting that officials acknowledge a long-term need for gas while simultaneously restricting North Sea exploration and considering costly interventions to import energy from abroad.

Industry advocates argue that imported LNG carries a significantly higher carbon footprint than domestically extracted gas. They are urging the government to support local production, specifically pointing to the pending Jackdaw and Rosebank developments. Together, these two projects could supply approximately 10% of the UK’s future gas needs.

“If you block North Sea production, you get imports,” Borthwick stated, criticizing the logic of potentially halting domestic fields only to rely on higher-emission tankers from overseas.

To address these concerns, the AGCC is calling for the removal of the 78% Energy Profits Levy and the approval of pending North Sea projects. They argue that supporting domestic extraction will protect jobs, generate tax revenue, and secure the UK’s energy supply as the mature North Sea basin declines.