Shale gas imports to the UK are a positive thing and should boost long term confidence in “reasonably priced” gas assets.
That’s the view of George Grant, Managing Director of Stag Energy, who said US shale gas has impacted the global gas market in recent years.
While the markets had been gearing up to transport large quantities of Liquefied Natural Gas into North America, the plan was “turned on its head” by the decision to export gas instead.
The first ever shipment of US shale gas arrived in the UK this week.
Mr Grant believes gas should be seen as a reliable fuel source for the long term.
Speaking to ELN at an Energy Institute policy debate on Tuesday, he added: “Gas is a much lower carbon fuel than coal so it is a logical replacement to balance a system with intermittent renewables.
“Over time we are going to see battery technologies coming forward and become more economical, so in time we can see renewable services being balanced by that. There is potential in the long run to move to a low carbon system, in the mean time you are going to need some gas on the system as well.”
He also discussed the role of capacity markets in managing gas demand and investor confidence in the sector: “Investment in gas has been in the doldrums for some time due to a combination of falling demand and uncertainty over future revenues – this is an area that capacity markets are hoping to address and fill the gap.”