Utility Bidder Energy Insights 2022 - Flipbook - Page 8
Europe has endured particularly cold winters - the European
Russia is a major provider of LNG around the globe and
winter of 2020/21 lasted far longer than usual due to climate
provides around one third of the gas consumed by European
change. It was the coldest April in the UK since 1922, and
countries. Despite increased demand for LNG from the
the coldest in Europe since 2003, according to the European
EU, Russian President Vladimir Putin argues that it’s the
Union’s Copernicus programme. This means that stored gas
unpredictability of the market that is causing problems.
supplies which governments keep in reserve have had to be
Even through the UK doesn’t rely too heavily on Russia -
used. Storage capacity in the UK is also lower than in some
with over half of our gas coming from Norway – the reduced
other European countries.
supply from Russia puts pressure on everyone.
Usually, gas storage sites are replenished in the summer,
however, this year’s high prices meant less was sent to
storage sites and not surprisingly those with gas in storage
are holding on to it. In addition, renewable energy has failed
to fill the gap of surging demand.
This map shows the mainline gas supply from
the Norwegian oil rigs in the North Sea.
Kollsnes, Sture and Mongstad
In 2020, Norway supplied the UK with the largest foriegn share of LNG at 28.61%. Here shows
the network of Norwegian oil rigs in the North Sea. This oil field helps to supply most major
European consumers - Germany, France and Belgium - with further distribution to the rest of
Europe via container ships from the ports in Kollsnes, Sture and Mongstad.