§ The Minister for Energy, E-Commerce and Postal Services (Mr. Stephen Timms)My predecessor, the hon. Member for Cunninghame, North (Mr. Wilson), launched a three-phase strategy on 5 June 2003 to look at the issue of gas quality, as the UK becomes increasingly import dependent. Phase one was a scoping study on whether there would be a gas quality problem, in particular but not exclusively in relation to the Wobbe number. ILEX Energy Ltd was appointed to take this work forward. This study is now complete and an edited version of this report, without commercially sensitive information, is available on the DTI/Energy Website[www.dti.gov.uk/energy shtml/domestic_markets/gas_market/index]
ILEX approached this study by carrying out a supply-demand analysis and identifying the main sources of gas required to meet the forecast demand. An assessment was then made of the likely quality of the various sources of imported gas and the implications of those gas supplies for Great Britain's entry terminals. ILEX had a number of meetings with future and potential future suppliers to gather quantitative data on the likely quality of gas from new import sources. These data, much of which are commercially sensitive, will be used by DTI, HSE and Ofgem to inform this exercise.
During Phase 1 the DTI, HSE and Ofgem held a workshop to engage industry at the early stages of this exercise. The workshop was successful in providing a forum for industry to discuss gas quality issues.
ILEX's work confirms that the future Wobbe1 specification of much gas imported into the UK before processing, is likely to fall outside the current upper Wobbe limit in the Gas Safety Management Regulations (GSMR). The UK's increasing dependence on imported gas does therefore raise the question whether the current upper Wobbe limit should be increased.
In the light of this result I have asked my officials to proceed with phase 2. Phase 2 will be a tripartite (DTI, HSE, Ofgem) consultation on the appropriate policy response. As my predecessor said, our broad policy options appear to be: the default option, to retain the current Wobbe limit (this would avoid the need to remove household appliances, but it would have the
1The Wobbe Number represents a measure of the heat release when a gas is burned at constant gas supply pressure. The Wobbe limit range in The Gas Safety Management Regulations is between 47.20 MJ/cubic metre and 51.41 MJ/cubic metre.
14WSdisadvantage of limiting UK access to the global gas market); or to change the current Wobbe limit (this would require the identification and removal of non-compliant gas appliances, but with an advantage in terms of facilitating gas imports).
My officials, together with HSE and Ofgem, will be working over the next months to prepare the ground for a consultation exercise on the policy option. My officials are also in discussion with the European Commission and representatives of the gas industry in the EU, about the work being carried out at the EU level on gas quality and the interaction with the present exercise.
I shall make a further statement to the House in due course to announce the forthcoming public consultation document. My Department would propose to hold a further workshop at that time.
This exercise has been developed by the DTI as a member of the Sustainable Energy Policy Network (SEPN), which is working to deliver the Energy White Paper "Our Energy Future—creating a low carbon economy".