§ 11. Mr. Douglasasked the Secretary of State for Energy if he will make a statement on the level of gas supplies from the southern sector of the North Sea in the current year.
§ Mr. GrayTotal gas production from the southern basin of the United Kingdom continental shelf in the first nine months of this year was approximately 19.5 billion cubic metres.
§ Mr. DouglasWill the Minister concede that in due time we shall have to import gas to offset the decline in the United Kingdom gas industry? What arrangements are being made with the Norwegians to use the United Kingdom as a land bridge, both to import, and probably to export, Norwegian gas in order to balance and reduce the dependence of Western Europe on Soviet gas?
§ Mr. GrayThe hon. Gentleman will be aware that at present Britain imports approximately 20 per cent. of our gas requirement from Norway. It has already been suggested to the Norwegians that the United Kingdom might be used as a land bridge but so far they have not shown much enthusiasm for the proposal. However, the Government are endeavouring to ensure that there will be adequate supplies of gas by enacting the Oil and Gas (Enterprise) Act, which now makes it much more attractive for companies to explore for gas. With regard to the southern basin, no fewer than 38 gas blocks are on offer in the eighth licensing round.
§ Mr. EggarCan my right hon. Friend confirm that British Gas is now predicting a serious shortfall in gas supplies in the late 1980s? Is that not directly due to the failure of British Gas over the years to give a decent price to southern producers?
§ Mr. GrayBritish Gas is making every effort to obtain gas purchases so that such a deficit will not be reached. It is best to leave pricing to British Gas. It is not something on which we can intervene.