Government reassures over gas as Iran conflict escalates

The Government has stressed that the UK’s gas supply will not be disrupted by the conflict in Iran.

Energy Minister Michael Shanks said some media reports around shortages are “categorically untrue and lead to dangerous scaremongering”.

Although the UK does import some liquified natural gas (LNG) from the Gulf, the Government said it benefits from “strong and diverse energy supplies”.

“This includes our own North Sea production, pipelines with Norway, interconnectors with continental Europe and three LNG terminals.   Only about 1% of the UK’s gas supply in 2025 came from Qatar. We have no reason to expect it would be significantly different in 2026 or beyond,” it said.

However, it said rises in the cost of wholesale gas could see energy bills rise for businesses and homes, underlining the need to move to “clean, secure, homegrown power”.

Cornwall Insight’s forecasts for the next price cap have surged to £1,801 a year following sharp increases in wholesale gas prices. However, it stressed that the assessment period for the July price cap has only just begun.