UK government considers multi-billion pound LNG import expansion

The UK government is reportedly considering investing billions of pounds into new facilities to increase liquefied natural gas (LNG) import capacity. This potential intervention comes as domestic North Sea production declines and the government maintains restrictions on new exploration licenses.

Industry representatives, including the Aberdeen & Grampian Chamber of Commerce (AGCC), have criticized the move, labeling it hypocritical. Russell Borthwick, Chief Executive of the AGCC, argued that blocking domestic fields like Jackdaw and Rosebank—which could provide approximately 10% of future gas supply—will lead to a greater reliance on overseas imports that carry significantly higher carbon emissions than domestically produced gas.

The debate follows the government's decision to implement a 78% headline tax rate on the industry via the Energy Profits Levy, a move critics say has driven down UK production and threatened jobs. While environmental groups have supported the restriction of new fields, the Department for Energy Security and Net Zero (DESNZ) paper indicates that ministers are weighing additional import capacity to address long-term energy security needs.