UK faces emerging gas supply risks as demand falls slowly, energy operator warns

LONDON (Reuters) -Britain's energy operator said on Wednesday that gas will remain critical for energy security into the next decade and warned of potential shortfalls on the coldest days.

The National Energy System Operator said in its first gas security of supply assessment after being established last year that overall gas demand will decline as Britain decarbonises, but peak-day demand will fall more slowly, leaving risks if progress on cutting emissions stalls or if major infrastructure fails.

The report, which looks ahead to winters in 2030/31 and 2035/36, said Britain will continue to draw on a diverse mix of sources - including domestic production, Norwegian imports, liquefied natural gas, European pipelines, storage and biomethane - though output from the UK Continental Shelf will keep shrinking.

NESO said mitigating measures may be needed to maintain resilience, including reducing peak-day demand, maximising existing infrastructure and developing new supply options.

"Gas remains a critical component of Britain's energy security - keeping homes warm, powering industry and supporting electricity generation during periods of peak demand and low renewable output," said Glenn Bryn-Jacobsen, director of energy systems and resilience at National Gas.

"In considering potential solutions, it is essential to look at both the gas supply landscape and the investment required in network infrastructure."

(Reporting by Sam Tabahriti; editing by Paul Simao)