Watchdog warns
BP over diverting oil from UK
Dec 6, 2005 - Independent-London
Author(s): James Daley
Ofgem, the UK energy regulator, has stepped up efforts to ensure
Britain has enough natural gas this winter, warning the likes of BP that
it would use its powers to ensure that import terminals at the Isle of
Grain storage facility were properly utilised.
BP and Sonatrach have exclusive rights to store imported liquified
natural gas (LNG) at the Isle of Grain facility. However, the facility
has lain idle since early October as shipments are diverted to Spain and
the US. Under a so-called 'use it or lose it' agreement, the two
companies are obliged to make any spare storage available to other
energy operators.
BP and Sonatrach has said that they would now use their full capacity
at the facility for the rest of this winter, and would also improve
transparency around the facility's use.
Britain imports gas from continental Europe through the 'interconnector'
between the UK and Belgium. But it has been less than half full when UK
demand is high, prompting speculation supplies are being withheld to
force up prices.
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