HC Deb 27 January 1986 vol 90 cc629-30
2. Mr. Portillo

asked the Secretary of State for Energy when he expects to make an announcement of his policy on the import and export of natural gas to and from the United Kingdom.

The Minister of State, Department of Energy (Mr. Alick Buchanan-Smith)

My right hon. Friend hopes to make an announcement as soon as possible.

Mr. Portillo

I thank my right hon. Friend for that reply. Has he had an opportunity to study the Select Committee report which recommends the liberalisation of imports and exports? Does my right hon. Friend recognise that it would be helpful to the Standing Committee on the Gas Bill if the Secretary of State's statement could be made while the Committee is still sitting?

Mr. Buchanan-Smith

I have looked at the Select Committee report, and it is significant that the report says that a number of United Kingdom gas producers have reservations about unfettered imports and acknowledges that other interests see problems in regard to exports. Given that it is a comlex problem, about which there are conflicting views, we should give this important matter much consideration.

Mr. Wilson

In view of the question mark that hangs over the self-sufficiency of gas supplies in the 1990s, will the Minister consider taking advantage of the drop in world oil prices and the link with gas prices to renegotiate a deal with Norway to bring in imports?

Mr. Buchanan-Smith

If the hon. Gentleman had followed the matter more closely, he would realise that the gap predicted for the 1990s—if there is a gap—is infinitely smaller than the total amount of gas that would have been available under the Sleipner deal. If that deal had gone ahead, it would have jeopardised the development of our own resources in the North sea. Neither I nor the Government wanted that.

Sir Trevor Skeet

Is my right hon. Friend aware that a gas pipeline to Europe is well overdue and that that is probably the only way to deal with price flexibility in the long term?

Mr. Buchanan-Smith

Yes, Sir. The Government are equally responsible for ensuring that our resources in the North sea are developed properly without abuse. That weighs strongly with me.

Mr. Douglas

Does the Minister accept that imports and exports of natural gas cannot be divorced from imports and exports of oil? What view does he take of our self-sufficiency, since the price of North sea crude has been almost halved in a month?

Mr. Buchanan-Smith

Oil and gas are different. Oil is tradeable in the world market, whereas gas is not. Although they are related, one must look at them in different lights.