Energy Act 1976

9 Use and liquefaction of offshore natural gas

(1) The Secretary of State's consent is required for offshore natural gas to be used in Great Britain, except—

(a) use by, or of a supply provided by, the British Gas Corporation ; or

(b) use of a supply provided by any other person, so long as there is consent to the supply under section 8 above : or

(c) use of a supply provided otherwise than through pipes ; or

(d) use to provide heat or energy in connection with the purification, fractionation or movement (by pipe-line or otherwise) of offshore natural gas.

(2) The Secretary of State shall give his consent under subsection (1) to use by the licensees or a company associated with them in the same group for industrial purposes which are not industrial fuel purposes and which do not include the use of the gas for a process of crude stabilisation or in connection with the movement of offshore crude by pipe-line or otherwise.

(3) Consent under subsection (1) is not to be given to any use of gas for industrial fuel purposes, except use by the licensees or a company associated with them in the same group, unless the Secretary of State is satisfied that the British Gas Corporation have been given an opportunity of purchasing the gas at a reasonable price or have made known, in writing, that they do not require such an opportunity.

(4) The provisions of subsections (2) and (3) as to the use of gas by the licensees or a company associated with them in the same group do not apply—

(a) to gas acquired by the licensees in pursuance of an agreement for the sale of the gas under which the price is payable after the gas is won and saved ; or

(b) to gas acquired by an associated company otherwise than from the licensees either directly or in circumstances such that all the intermediaries were other companies associated in the same group.

(5) The Secretary of State's consent is required for offshore natural gas to be subjected in Great Britain to any process of liquefaction which results in the production of liquid methane or ethane except such small quantities of liquid methane or ethane as may be produced in the course of providing supply to the British Gas Corporation or, with consent under section 8 above, to any other person.