§ 11. Mr. Kenneth Carlisleasked the Secretary of State for Energy what proportion of natural gas sold by the British Gas Corporation is imported.
§ Mr. Buchanan-SmithBetween 20 and 25 per cent. of the British Gas Corporation's gas supplies are imported, all from the Norwegian sector of the Frigg field.
§ Mr. CarlisleIs this not far too high a proportion for Britain, which has substantial gas reserves of its own? That is a clear reason why it was necessary to pass the Oil and Gas (Enterprise) Act. How is that Act progressing in encouraging greater exploration of our gas reserves in the North Sea?
§ Mr. Buchanan-SmithBritish Gas has a responsibility for security and continuity of supply and it entered into these contracts, I believe rightly, to fulfil its obligations. However, I find it encouraging—I hope that my hon. Friend does, too — that gas activity on the United Kingdom continental shelf is now greater than for some time. Seventeen exploration appraisal wells were started last year in the southern basin compared with only two in the previous year and none in the three years before that, so the trend is encouraging.
§ Mr. EggarWhat attitude will my right hon. Friend take should British Gas decide to try to purchase Sleipner gas from the Norwegian sector?
§ Mr. Buchanan-SmithThat is the subject of commercial negotiation between British Gas and the various Norwegian bodies. The chairman is keeping in touch with me and my right hon. Friend. At this stage I can only say that negotiations are continuing and that we shall consider the issue when proposals are to be made.