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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