Research and Markets: Gas Industry Update Market Report 2012

DUBLIN--(BUSINESS WIRE)-- Research and Markets ( has announced the addition of the "Gas Industry Update Market Report 2012" report to their offering.

This Key Note Market Update analyses the UK downstream' gas industry consisting of all onshore gas activities in terms of transmission, distribution and supply. The overall volume of gas demand in the UK declined by 17.1% in 2011, largely due to milder weather conditions experienced in the final quarter of the year.

The downstream gas market can be divided into four consumer sectors: transformation (this includes both electricity and heat generation), domestic, industrial, and other final users. The vast majority of demand is derived from the domestic sector, which accounted for over half of all natural gas sales in 2011.

The majority of gas demand in the UK is now sourced from overseas. Historically, the UK has been a major producer of natural gas, with offshore exploration and production activities satisfying significant proportions of its demand. However, production activities in the UK Continental Shelf are in long-term decline, with newer discoveries becoming increasingly challenging to develop. As such, the UK recently became a net importer of natural gas and, in 2011, imports overtook indigenous production for the first time.

Other major trends affecting the UK gas industry include the UK's environmental commitments. Over the next few decades, in order to meet energy targets agreed upon with the EU, the UK Government plans to invest significant capital in order to decarbonise the electricity market and reduce carbon emissions in other energy generation activities. This will inevitably reduce gas demand in the long term, as gas is used significantly in the generation of both electricity and heat. However, investment in carbon mitigation technology, particularly Carbon Capture and Storage (CCS), could allow continued significant use of gas in energy generation.

Future gas demand is expected to remain relatively static over the short term. However, as the UK approaches its 2020 European commitments, and more stringent ones beyond that, gas demand is expected to exhibit a steady annual decline. It is important to note that although the UK is committed to reducing its reliance on fossil fuels, the lack of sufficient production and infrastructure, along with the intermittent nature of renewable sources, will ultimately mean the UK will be dependent on fossil fuels as an energy source for the foreseeable future.

Companies Mentioned

- Centrica Plc

- Edf Energy Plc

- E.On Uk Plc

- National Grid Plc

- Rwe Npower Plc

- Scottish Power Uk Plc

- Sse Plc

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Research and Markets
Laura Wood, Senior Manager
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Sector: Gas

Source: Research and Markets