- The UK's natural gas production rose by 26% in the first half of 2022 as volumes sent to Europe surged.
- Europe is facing an energy crisis after Russia slashed its gas exports in retaliation for war sanctions.
- But the UK is unlikely to help with Europe's winter crunch, as may need to import gas too.
The UK has ramped up production of natural gas by 26% this year as Europe grapples with an energy crisis spurred by Russian cuts to gas pipeline flows.
Its energy producers bumped up supplies by 3.5 billion cubic meters in the first half of 2022 by drilling new North Sea fields and cutting back on shutdowns, industry body Offshore Energies UK said Wednesday.
Since the Ukraine war, the UK has boosted its natural gas supply to Europe's storage sites, according to official figures. The continent is facing an energy crisis after Russia slashed gas flows to the region, where prices for the commodity have soared to record highs.
Europe's governments are scrambling to find an alternative to Russian gas. They're looking to get its hands on all they can to secure enough supply for the colder months — including from the UK, a relatively small exporter.
The UK's glut of natural gas in the summer meant it had supply to spare for its European neighbors, but that isn't likely to be the case this winter. It will likely need to pull in gas supply from Norway to cope with winter demand, according to market watchers.
The country has broken all energy links with Russia, and in June it didn't import any oil, gas or coal from the country, Offshore Energies UK noted. That will add to the pressure on supply.
In Europe, power generators and industry consumers are switching away from gas as its price shoots up. Operators in Germany, the Netherlands and Denmark are switching to coal-fired power generation and even forms of rationing to deal with shortages.
European natural gas prices have have skyrocketed this year, with Dutch TTF natural gas futures up 300% since the start of 2022. In its latest close, Dutch TTF futures were trading at 321.415 euros ($321) per megawatt hour at last check Friday.
