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The journey of gas from the source to your business
Every time you turn on a boiler or use a gas powered manufacturing line the fuel has already travelled hundreds of miles to reach you. The journey begins far away from your business premises.
The UK currently gets its gas from two primary sources. About 45 percent of the gas we use is produced domestically from fields under the North Sea and the Irish Sea. This gas is extracted by massive offshore platforms and sent through undersea pipelines to terminals on the coast.
The remaining 55 percent of our gas is imported from overseas. A large portion of this comes via direct pipelines from Norway and the Netherlands. The rest arrives as Liquefied Natural Gas or LNG. This is gas that has been cooled into a liquid state so it can be transported on giant tanker ships from countries like the USA and Qatar. Once these ships arrive at UK terminals the liquid is warmed back into a gas and pumped into the national network.
Before it can be used by businesses the gas must be processed. Facilities like the Bacton Gas Plant in Norfolk or the terminals at Milford Haven remove impurities and ensure the gas meets safety standards. Once the gas is ready it enters the high pressure network to begin its final journey to your meter. If you want the plain English definition first, start with our guide on what business gas is, then come back here for the behind the scenes journey.
A simple explanation of the UK gas grid
The UK gas grid is best thought of as a system of motorways and local roads. It is a vast network of pipes that ensures a constant flow of energy across the country.
The first part of this grid is the National Transmission System. This is operated by National Gas and acts as the motorway network. These are massive high pressure pipes that move huge volumes of gas between terminals and regional hubs. Because the pressure is so high this part of the network does not connect directly to your business.
The second part consists of the regional Gas Distribution Networks or GDNs. These act like the local roads and side streets. There are eight of these networks across Great Britain managed by four different companies. These companies own the smaller pipes that run under the streets in your local area.
When gas leaves the high pressure National Transmission System it passes through a pressure reduction station. This makes the gas safe for the smaller pipes that eventually connect to your property. Your individual connection point is identified by a unique number called an MPRN, which is the number suppliers use to match the right meter to the right address. If you have ever had to dig out that number when sorting out a contract, our guide explains it in plain English what an MPRN is and why it matters.
The main players in the UK gas supply chain
Understanding who does what in the energy market helps when you are looking at a renewal and wondering why two quotes can look so different. If you are at that stage, this overview will make our guide on how to compare business gas suppliers feel a lot less abstract. There are four main roles in the supply chain.
| Role | Responsibility |
|---|---|
| Producers | Companies that extract gas from the ground or import it from abroad. |
| Shippers | Wholesale traders who buy gas from producers and pay transporters to move it. |
| Transporters | The owners of the physical pipes and infrastructure. |
| Suppliers | The companies you sign a contract with and who send you your monthly bill. |
Producers are firms like Shell or BP who operate the wells and platforms. They sell the raw fuel to shippers. Shippers are the middle men of the energy world. They do not usually own the pipes but they book space in them to move gas from the terminals to the areas where it is needed.
The transporters are the organisations that actually dig the holes and fix the leaks. National Gas handles the high pressure pipes while companies like SGN or Cadent handle the local distribution. Finally your supplier is the brand name on your energy bill. They buy the gas from the shippers and deal with your customer service and billing.
Your gas supplier does not own the pipes in the street. If you have a gas leak or a problem with your connection you often need to contact the regional transporter rather than your energy supplier.
How the supply network affects your gas bill
The way gas is moved around the UK has a direct impact on the cost of your energy. When you look at a business gas bill you are not just paying for the fuel itself. You are also paying for the journey it took to reach you.
These are often called non commodity costs or pass through costs. Your supplier collects this money from you and then pays it back to the transporters and the grid operators. These charges cover the maintenance of the pipes and the operation of the pressure stations. They also cover the cost of balancing the network to ensure there is always enough gas to meet demand.
The geographical location of your business plays a part here too. It costs more to pump gas to a remote area than it does to a city near a major terminal. This is one reason why a business in Scotland might see different delivery rates compared to a business in London. If you have ever looked at a quote and thought, hang on, where did that figure come from, our guide breaks it down step by step on how business gas prices are calculated.
Transmission and distribution costs are usually included within your unit rate or your standing charge. Because these are regulated costs they tend to change once or twice a year. Even if you have a fixed price contract for the gas itself the government or regulators can sometimes change these infrastructure fees.
Example of a supply chain disruption
To understand how the supply chain works it helps to see what happens when something goes wrong. Imagine a major gas processing terminal on the coast of Norfolk needs to close for unplanned maintenance.
Suddenly a large percentage of the UK’s daily gas supply is missing from the network. The shippers who have promised to deliver gas to their customers must now find that gas elsewhere. They might look to buy more gas from Norway or ask for an LNG ship to arrive earlier.
Because the supply is lower but the demand from businesses and homes remains the same the wholesale price of gas will spike. Even though the physical pipes are still working the cost of the fuel inside them has increased because the source has been disrupted.
As a business owner you might not see an immediate change if you are on a fixed contract. However if the disruption lasts for a long time the market prices will remain high. This affects what you will pay when it comes time to renew your agreement. This illustrates why the physical journey of gas is so closely tied to the financial cost for your company.
Common myths about business gas supply
Many business owners have misconceptions about how their gas actually reaches them. Clearing these up can help you understand the service you are paying for.
This is a very common myth. The gas that comes out of your pipes is exactly the same regardless of which supplier you use. All gas in the UK network must meet the same strict safety and quality standards. When you switch suppliers you are switching who bills you and who manages your account but the physical molecules of gas do not change.
Your supplier is a retail company and they do not own the infrastructure. The pipes that lead to your property are owned by the regional Gas Distribution Network. The internal piping inside your building is the responsibility of the property owner or the business tenant.
Some businesses worry that they will lose supply when they change contracts. This is not how the system works. Because everyone uses the same pipes the gas flows continuously. A switch is simply a transfer of data between the old supplier and the new one. There is no physical disconnection required.
The energy content of the gas leaving the national transmission network is not fixed — our calorific value in gas billing explainer covers why that matters for what you actually pay.
Key takeaways for business owners
- Gas comes from a mix of UK offshore fields and international imports via pipelines and ships.
- The network is split into a high pressure national system and local regional distribution grids.
- Suppliers do not move the gas themselves but they manage your contract and billing.
- A significant part of your bill goes toward maintaining the physical pipes and infrastructure.
- Switching suppliers has no impact on the physical quality or reliability of your gas supply.
The UK gas supply system is a highly regulated and complex operation. While you do not need to know every technical detail about pipeline pressure or calorific values knowing the basic roles of the players involved can help you navigate the energy market with more confidence.