More Pembroke-style gas projects will put “pressure” on gas market

It looks increasingly likely the UK will see more projects like the new gas power station in Pembroke, say analysts, which could have a notable impact on the gas market. […]

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By Vicky Ellis

It looks increasingly likely the UK will see more projects like the new gas power station in Pembroke, say analysts, which could have a notable impact on the gas market.

Yesterday npower officially opened its new efficient Combined Cycle Gas Turbine (CCGT) plant in Wales (pictured).

Analysts suggest policies such as the carbon floor price and the need to hit EU emissions targets will encourage more gas projects into existence.

Gary Hornby, an energy analyst at Inenco said: “Older, more pollutant power stations are having to close and the UK is having to replace them with new, more efficient power stations.

“Gas burn is less pollutant than coal burn – and gas has been given the green light to increase its share of the UK generation mix with tax breaks being offered to encourage further North Sea exploration and reduce the cost of using gas for power generation.”

He suggested this could put pressure on the gas market: “It seems likely that projects such as the Pembroke gas–fired power station will continue to emerge, putting pressure on the finite gas resources available.”