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UK-EU hydrocarbon ties safe from post-Brexit storm

UK-EU hydrocarbon ties safe from post-Brexit storm

Mubasher: The UK economy is expected to face various challenges after leaving the EU, however, Brexit is not likely to have a major impact on the kingdom’s hydrocarbon ties with the bloc, data and analytics company GlobalData said.

The UK’s hydrocarbon industry relies heavily on EU members, with natural gas pipelines that cross Belgium and the Netherlands contributed around 13% of the UK’s natural gas imports in 2018.

“It is highly likely that the UK will aim to prevent any disruptions to oil and gas arrangements currently in place with EU countries,” oil and gas analyst at GlobalData, Daniel Rogers, commented.

Moreover, the UK’s gas exports to Ireland recorded a four-year high in November 2019 and are expected to rise due to the decline in the Irish domestic supply. The UK’s crude oil exports to the EU made up 63% of the kingdom’s total crude oil exports.

“Past collaborative efforts, particularly between the UK, Norway, and the Netherlands, have enabled cross border developments and generated value for the UK oil and gas industry, something that is unlikely to change as a result of Brexit,” Rogers said.