LONDON: Britain's natural gas imports in the first quarter of the year were at their lowest for five years as mild winter temperatures reduced demand by a fifth, government statistics showed on Thursday.
UK gas imports from pipelines and shipped liquefied natural gas (LNG) fell by 22 percent in the first quarter to 12.8 billion cubic metres (bcm) from the same period last year, data from the Department of Energy and Climate Change (DECC) showed.
This is the lowest level of imports in the first three months of the year since 2009.
"This reflects lower demand with warmer temperatures seen in the first quarter of 2014," DECC said.
January to March are usually the coldest winter months in Britain and demand for gas for heating usually increases but gas demand dropped by 20 percent in the first quarter this year.
Due to mild temperatures, British wholesale natural gas prices have been steadily falling since last autumn. On Thursday, gas prices for next winter dropped to their lowest since 2011.
Britain is becoming increasingly reliant on gas imports because domestic reserves in the North Sea are falling rapidly after around 40 years of production.
The government has allowed tax breaks for smaller gas fields to ensure the country's remaining reserves are used to maximum potential.
In total, Britain imported around 67 percent of its gas from Norway in the first quarter, 21 percent from the Netherlands and 9 percent was LNG, DECC statistics showed.
Global competition for LNG reduced imports into Britain in the first quarter, DECC said. However, LNG imports have picked up since. Reuters data shows LNG import volumes this spring have been at their highest levels since 2012.
UK coal production in the first quarter also fell to a record low of 2.7 million tonnes, down 28 percent year on year, the data showed.
"This was due to a number of colleries/companies closing, and geological conditions at some of the remaining mines," DECC said in its report.
Overall imports of coal were down 2.5 percent year on year at 11.7 million tonnes while imports from Russia rose by 21 percent.
Demand for coal was 15 percent lower than the first quarter last year at 15.5 million tonnes, as consumption by utilities fell by 18 percent.
Meanwhile, electricity generation from renewable energy sources, such as wind, solar or hydropower, is increasing. Renewables' share of total generation in the first quarter hit a record 19.4 percent.
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