UK Gas Pipe Firm Warns of Infrastructure Loss Without Tax Change

The UK will start to see key North Sea energy infrastructure shutting down prematurely if the government doesn’t change its tax policies, said the operator of one of the country’s most important offshore gas pipeline networks.

Shippers of gas flowing from the North Sea through the Central Area Transmission System, or CATS, have already reduced production to about 65% of the level anticipated before the windfall tax was introduced in 2022, said Nathan Morgan, chief executive officer of operator Kellas Midstream Ltd.

If the Energy Profit Levy remains in place until 2030 as the government plans, that level could ...