NSTA: North Sea gas is “significantly” lower in carbon intensity than imports

(WO) – North Sea gas is significantly cleaner and supports the drive to net zero greenhouse gas emissions far more than imports, according to analysis published today by the North Sea Transition Authority (NSTA).

The research shows that domestically produced gas is on average almost four times cleaner than importing gas in LNG form. This is because of both the way the gas is transferred and, in some cases, the methods of extraction. Norway has the lowest carbon intensity of all LNG imports at 33 kgCO2/boe, and Peru the highest at 90, with the average coming to 79, while UK gas has a carbon intensity of only 21 kgCO2/boe.

Carbon intensity is the amount of carbon dioxide (CO2) emissions created per barrel of oil equivalent (boe) produced.

The primary causes for the stark difference in emissions are the process of liquefaction – turning the gas into liquid for transport - then transportation via shipping, and finally regasification, turning the liquid back into gas so it can be used.

The report shows that around 63% of UK gas supply is imported into the country, 187 MMboe via pipeline and 156 MMboe from LNG. The UK produced 38% of its gas supply in 2022, a total of 206 MMboe. Yet that 38% was responsible for only 24% of total emissions associated with gas supply, whereas LNG from the United States was responsible for 35% of the emissions, despite being only 14% of the supply.

Oil and gas currently contribute around three quarters of domestic energy needs and official forecasts show that, even as demand is reduced, they will continue to play an important role while we transition to net zero.

Helping to deliver UK energy security and the drive to reach net zero go hand-in-hand. The analysis shows that domestically-produced gas creates significantly fewer emissions than average imports, and that continuing to produce gas in the UK as cleanly as possible will assist in the drive to cut emissions.

The NSTA is currently assessing the 115 bids received for licenses in the 33rd Oil and Gas Licensing Round, with a view to awarding licenses later in the year. These new licenses will help to ensure energy security and support the drive to cut emissions by reducing reliance on dirtier more carbon intensive gas imports.

However, it is vital that emissions are tackled at home as well, so the NSTA has already offered 21 carbon storage licenses from the UK’s first-ever Carbon Storage Licensing Round, sites which could store up to 10% of total annual UK emissions.

The NSTA’s commitment to the energy transition is demonstrated by the fact that the group’s interventions have prevented the lifetime emission of 3.9 million tonnes of CO2e - equivalent to taking 1.9 million cars off the road for a year.