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British oil production rose by 9% in 2018, gas output declined by 3%

According to preliminary statistics released by the British Department for Business, Energy & Industrial Strategy (BEIS), British gas production decreased by 3.1% in 2018 due to the closure of the Theddlethorpe dry gas terminal in August 2018, whereas production had been growing since 2013. Gas imports declined by 2% owing to a 3.6% drop in pipeline imports, despite a 7.3% increase in LNG imports (17% of total gas imports). Norway remained the main source of gas imports (70% in 2018), while Qatar remained the largest LNG supplier (55% of LNG imports). Gas exports fell by 1/3 to their lowest level since 1998, as gas pipelines to Belgium and the Netherlands were used for imports during cold weather episodes in early 2018 and as the long-term capacity contract for the UK-Belgium interconnector ended in early October 2018. Gas consumption in the United Kingdom remained stable in 2018, since the 4.7% decrease in the demand from the power sector (higher renewable power generation) was offset by a 3.1% increase in final consumption due to a colder weather (+3.1% for households).



Contrary to declining gas output, oil and NGL production rose by 8.9% in 2018, as new projects on the UK continental shelf (UKCS) came online during the year. Consequently, crude and NGL exports grew by 17%, while imports remained stable. Relatively high levels of maintenance in British refineries led to a 2.9% cut in oil products production. The final consumption of refined products declined by 1.6%, including a 1.2% drop for transport fuels, which is the first decrease in transport consumption in 5 years. In 2018, the United Kingdom was a net importer of primary oils (crude oil, NGLs and process oils), which accounted for 14% of the supply, and a net importer of petroleum products. Domestic demand slightly increased in 2018 (+1.5%), especially during the early 2018 cold snap.