§ 23. Sir G. Nabarroasked the Minister of Power whether he will now make a statement on the imports substitution value of North Sea gas for 1969–70 and the prospects for the 1970s; how much imported and how much indigenous fuel is replaced by North Sea gas; and to what extent the total potential has now been exploited.
§ Mr. FreesonThe estimated net foreign exchange saving from North Sea gas remains about £50 million in 1970 rising to about £100 million in 1975. The gas will mainly replace oil.
§ Sir G. NabarroIs that the maximum capacity of all the North Sea gas fields, and is it capable of increase in the next five years in the interests of making a more dynamic contribution towards our balance of payments and relieving the burden of imported fuels by indigenous-produced fuels?
§ Mr. FreesonOn the latter point, this is something which we are intending to aim for, with the speedy absorption of natural gas into the country's economy. On the question of future capacity of natural gas supply from the North Sea, I believe that there is a further Question down on the Order Paper.
§ Mr. Hector HughesDoes that Answer not refer to a conflict between imported gas and indigenous gas, contrary to the national interest and contrary to the balance of payments? Will the Minister take steps to encourage the use of the indigenous gas?
§ Mr. FreesonNorth Sea gas is indigenous gas and to the extent that it can be brought into the country's economy it will replace gas produced by oil conversion, thereby assisting our foreign exchange position.