§ 7. Mr. Jonathan Djanogly (Huntingdon) (Con)When she expects that the UK will become a net importer of gas. [149737]
§ Mr. DjanoglyFor the first time in a generation Britain needs to face up to the prospect of becoming a net gas importer. Knowing that, why do the Government continue to shirk their responsibilities and duck the hard decisions required, including those on nuclear and coal power, to ensure the security of supply and a viable platform for promoting renewable energy sources?
§ Mr. TimmsWe are certainly not shirking any responsibilities, and, as the hon. Gentleman must know, we have done a great deal to encourage and promote the big investment in renewable electricity generation that we need. Every G7 country except for Canada and the UK is a net energy importer, so the position in which we will find ourselves is by no means unusual. The security of UK gas supply will require sufficient infrastructure and gas of the right specification available for import, and there is a great deal of activity to make sure that we have security of supply; for example, in October I reached agreement with my Norwegian counterpart on the principles for a treaty on a new gas pipeline from Norway to the UK. We are taking all the necessary steps to ensure future UK energy security.
§ Mr. George Stevenson (Stoke-on-Trent, South) (Lab)Will my hon. Friend consider the situation whereby at present we are exporting gas to the European Union, owing to the complete failure of the European Commission to open up the gas market in the EU? That is having serious adverse effects on energy-dependent industries, such as the ceramics industry in Stoke-on-Trent, and forcing up gas prices in this country because of the artificial gas market in the EU. Will my hon. Friend take the matter seriously and treat it as a priority, and will he see what he can do to ensure that the EU opens up its gas market, as it has pledged to do, without any further undue delay?
§ Mr. TimmsI agree with my hon. Friend about the importance of an open market for gas in the European Union. We are making progress, but certainly in the past it was not as rapid as we might have hoped. However, we are now making headway. I talked about the importance of infrastructure in ensuring that industries in my hon. Friend's constituency as well as gas users around the country have the security of supply that they need, which is why we are looking at doubling the capacity of the UK/Belgium interconnector. There is also a proposal for a new interconnector from the Netherlands. Using all those methods, we can secure the gas that industries and household users will need in future; but I agree that it is important to have open markets across the EU.
§ Mr. Michael Jack (Fylde) (Con)The workers at British Nuclear Fuels Ltd. in my constituency will be concerned by the Minister's exchanges with my hon. Friend the Member for Huntingdon (Mr. Djanogly). They are aware that the Government are putting significant resources into research into nuclear fusion by funding projects at JET—the Joint European Torus—and CERN, but they are worried that similar support is not being provided for research into nuclear fission to develop new forms of conventional nuclear power station so that we can increase our energy security in future. Will the Minister look again at the balance of that research funding?
§ Mr. TimmsWe made it clear in the energy White Paper that it is important that the nuclear option remain open, which has implications for future research funding. We are looking at how much funding there should be and where it should be directed in the work leading up to the spending review next summer. The issue raised with the right hon. Gentleman has been raised with me as well.
§ Mr. Dennis Skinner (Bolsover) (Lab)Does the Minister recall that a few weeks ago we met him and the Prime Minister in a room behind the Speaker's Chair to discuss why we were going to become a net importer of gas? The reason is that after the pit strike in 1984–85, 170 coal mines were left, and the Tories closed 153 of them in the run-up to the 1997 election. To ensure that we keep that handful of pits open, and to prevent the importing of too much gas, will my hon. Friend keep in mind the solution that we gave him and which he promised to look at? Coalfields such as Selby and 1462 Hatfield in Yorkshire and many more will benefit from the European directive, and if he takes up our proposals, he will help to stave off more gas imports.
§ Mr. TimmsI vividly recall the meeting that my hon. Friend refers to. We had a good discussion about the large combustion plant directive and alternative ways of implementing it. I assure my hon. Friend that, bearing that meeting in mind, I am looking extremely carefully at these issues.
§ Adam Price (East Carmarthen and Dinefwr) (PC)Is the Minister aware of the major explosion on Monday night in the Algerian town of Skikda, where the main complex for the export of liquefied natural gas to the European Union is situated? Does not the fact that almost a third of Algeria's gas export capacity was wiped out overnight give rise to concerns about the Government's policy on security of supply?
§ Mr. TimmsYes, I am aware of that event, and I believe that the whole House would want to join me in expressing sadness about the loss of life. The LNG industry has a very good safety record, despite that tragic event in the past few days. I understand that that particular facility does not currently export gas to the UK, but exports it elsewhere. However, it is important that that the highest standards of safety should apply in the industry, as they should in other energy industries. That is a clear requirement in the UK, and we are happy to work with other suppliers around the world to ensure that equally high standards apply elsewhere.
§ Mr. Bob Blizzard (Waveney) (Lab)Is it not the case that whether we use our own or imported gas, gas will continue to be the main source of our power generation for many years to come? Does my hon. Friend agree that we could get near-zero CO2 emissions from gas-fired power generation if we captured the carbon dioxide and stored it by injecting it into underground oil reservoirs, at the same time maximising the recovery of our oil reserves, and oil revenues? Will he undertake more research into that? Is it not a win-win solution?
§ Mr. TimmsI am aware of my hon. Friend's interest in that idea, and I pay tribute to him for all his work on behalf of the offshore oil and gas industry, which is greatly appreciated in the industry and in Government. We have conducted research—we have sponsored research jointly with industry since the mid-1980s—on the use of carbon dioxide injection into mature fields to recover more hydrocarbons. We are currently investigating the feasibility of demonstrating the use of CO2 for enhanced recovery in the North sea, and we expect to publish the findings of that investigation in March.
§ Mr. Laurence Robertson (Tewkesbury) (Con)Following the question from my hon. Friend the Member for Huntingdon (Mr. Djanogly), are the Government concerned that the renewables target of only 3 per cent. is not being met? There are environmental pressures on the coal industry, as we heard. The nuclear industry does not know whether it has a future. The situation was not helped by the comments of the Minister's noble Friend Lord Davies, who said of the nuclear industry: 1463
We don't envisage that we will need one.Is the Minister not concerned that because of that situation, we will become over-reliant on imported gas? Is he concerned that the Government have not investigated the possibilities of gas from Russia and other countries, as they might have done? Is there not a greater urgency to see whether we can bring gas all the way from Russia safely? There is a big question about the security of supply, and we on the Opposition Benches are worried that the Government are rather complacent about the medium-term energy supply.
§ Mr. TimmsWe are certainly not complacent. There are clearly big changes going on in the energy market and we are working hard and carefully to make sure that we secure our future supplies. The hon. Gentleman suggested that we had not done much about Russia. In fact, last summer I signed with the Russian Energy Minister a memorandum of understanding on the proposed north European gas pipeline, so we are vigorously pursuing that option.
There are three major proposals for liquefied natural gas import projects, two at Milford Haven and one on the Isle of Grain. Centrica has put in place long-term gas supply contracts with Gasunie of Holland and Statoil of Norway. I have spoken about the interconnectors and the agreement with Norway. There is a great deal of activity, as there needs to be, in order for us to be confident of our future supplies of gas.