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Gas transmission and distribution networks in Britain

Britain’s gas networks consist of 285,000 km of pipes that transport gas from where it is extracted in the North Sea, or imported from abroad, to 23 million properties nationwide.

This guide explains how the gas transmission and distribution network works. Here’s what we cover:

• Entry points into the gas network
• National Transmission System (NTS)
• Gas Distribution Networks (GDNs)
• Who operates the gas networks in Britain?
• How gas suppliers use the transmission and distribution networks

Entry points into the gas network

Entry points are physical locations where natural gas is injected into Britain’s high-pressure gas pipeline, known as the National Transmission System (NTS).

This section explains the four key types of entry points that feed gas into Britain’s gas transmission network.

Offshore gas fields

The UK currently meets around half of its gas demand from offshore production platforms in the North Sea and Irish Sea. These platforms transport gas into the gas network via subsea pipelines to coastal terminals.

At an onshore coastal reception terminal, gas is processed and metered before entering the high-capacity gas pipeline network. The most important gas reception terminal is St Fergus in Scotland.

Pipeline imports from Europe

The British gas transmission network is directly connected to Belgium, the Netherlands and Norway through high-capacity subsea pipelines.

The pipelines to Belgium and the Netherlands are bidirectional, helping to balance supply and demand through international gas trading.

The most important pipeline for British gas imports is the Langeled pipeline, which transports gas from Norwegian North Sea fields.

LNG import terminals

The British gas network receives large quantities of liquefied natural gas (LNG) shipped by ship from the US and the Middle East.

There are regasification terminals in South Wales and South East England that receive LNG from ships, heat it to return it to a gaseous state, and then feed it into the pipeline network.

Find out more in our guide to LNG imports and terminals.

Gas storage

Gas storage facilities are connected to the gas transmission network and can store gas during periods of low demand, releasing it during periods of high demand.

Gas storage facilities are generally connected to high-capacity pipeline sections of the gas network.

Find out more in our guide to natural gas storage in the UK.

National Transmission System (NTS)

The National Transmission System is a high-capacity pipeline network that transports gas from the sources listed above down the spine of Britain to centres of demand.

The NTS consists of approximately 7,600 km of pipeline and 21 compressor stations. The gas transported through the system is maintained at pressures up to 94 bar (approximately 40 times the pressure of a car tyre). A series of turbines pushes the compressed gas through the network.

Source: Research Gate – An overview of international regulatory experience

National Transmission System capacity

The National Transmission System has the capacity to deliver 500 million cubic metres of gas per day, which is approximately four times the average daily national gas consumption.

This capacity allows the NTS to meet gas demand even during peak cold winter evenings, when consumption is at its highest.

National Transmission System exit points

The National Transmission System has direct connections to several energy-intensive industrial facilities that offtake gas directly from the NTS. These are known as Directly Connected Sites, and include:

• Gas power stations
• Steelworks
• Fertiliser plants

All other gas users in Britain receive their gas from a regional gas distribution network. The NTS connects to all eight regional gas distribution networks.

At these connection points, the pressure of the gas in the NTS is reduced to between 7 and 25 bar, metered, and transferred into the pipes of the gas distribution network.

Gas Distribution Networks (GDNs)

In Britain, there are eight regional Gas Distribution Networks, operated by the following companies:

Each GDN is responsible for delivering the gas it receives from the NTS to all homes and businesses in its area.

Gas Distribution Network pipelines

Individual Gas Distribution Networks consist of an extensive system of pipelines of varying diameters and pressure tiers, designed to move gas efficiently to end users.

Large-diameter high-pressure and medium-pressure pipes form a strategic backbone, carrying gas from the NTS connection points to towns and cities, while progressively smaller low-pressure mains distribute gas into neighbourhoods and individual streets.

At each stage, pressure-reduction stations safely step down gas pressure, ensuring a reliable supply to all types of customers.

Gas Distribution Network connection to end-users

Gas Distribution Network pipelines terminate at the building entry point for gas end users. At the point of connection, there is typically an emergency control valve and a domestic or business gas meter.

Responsibility for the safety, maintenance and emergency response relating to the pipes lies with the GDN operator up to the point of the domestic or business gas connection.

Smaller sub-networks, known as independent gas transporters, are also connected to the GDNs to extend the regional network and supply gas to some new property developments.

Who operates the gas networks in Britain?

In this section, we summarise the different organisations involved in distributing natural gas in Britain.

Gas transmission operator

National Gas is the gas transmission operator for the British mainland and owns and operates the NTS.

In addition to ensuring the efficient flow of natural gas through the NTS, National Gas is responsible for:

• Balancing supply and demand – ensuring there is sufficient gas in the NTS to meet consumer needs by balancing imports into the network with consumption.
• Network emergency coordinator – protecting the country by responding to gas network emergency scenarios.

National Gas is owned by Macquarie Asset Management and BCI Management Corporation, both global asset managers.

💡 Until September 2024, National Gas was partially owned by National Grid Plc, which owns the national grid for electricity.

Gas distribution operators

Gas distribution operators are responsible for the safe and reliable transportation of gas from the NTS to end users within their regional networks.

Key aspects of the role of gas distribution operators include:

• Leak detection, repairs and responding to emergencies.
• Arranging new business gas connections.
• Facilitating network upgrades and expansion.

There are four gas distribution operators in Britain:

Cadent Gas

Cadent Gas is the largest gas distribution operator in Great Britain, managing four regional Gas Distribution Networks that serve much of England, including the North West, the West Midlands, the East of England and North London.

It delivers gas to around half of all UK homes and businesses, operating and maintaining an extensive network of distribution pipelines, pressure control equipment and associated infrastructure.

SGN

SGN operates the gas distribution networks for Scotland and the South of England, supplying gas to urban, rural and island communities across a diverse geographic area.

SGN is leading a number of innovation projects related to hydrogen and biomethane production through the green gas support scheme.

Northern Gas Networks

Northern Gas Networks (NGN) owns and operates the gas distribution network across the North of England, including the North East, Yorkshire and parts of Cumbria.

NGN supplies gas to millions of customers through a largely urban and industrial network and has a strong focus on asset replacement, safety performance and resilience.

Wales and West Utilities

Wales and West Utilities operates the gas distribution network serving Wales and South West England, covering a mix of major cities, rural areas and coastal communities.

As a regulated network operator, it is involved in long-term planning for decarbonisation, including biomethane connections and the exploration of future gas network transformation.

How Ofgem regulates the gas distribution and transmission networks

Ofgem is the independent regulator responsible for overseeing Britain’s natural gas transmission and distribution networks.

This section summarises the key aspects of Ofgem’s regulation of the gas networks.

Price control framework

The gas networks in Britain are natural monopolies, so Ofgem carefully regulates the rates they charge to protect consumers.

Each year, Ofgem reviews and approves the regulated charges of the gas transmission and distribution network operators.

Business energy suppliers are charged for using the gas networks to deliver gas to customers. These are the two key elements of gas network charges:

• Daily standing charges: charged to guarantee the capacity of a gas connection on the network, measured in pence per peak day capacity (kWh). Find out more in our full guide to business gas standing charges.
• Distribution unit charge: a domestic or business gas price per kWh for gas transported through the local network, which depends on the location of the connection within the network.

Gas network operator incentives

Ofgem uses financial incentives and penalties to encourage strong operational performance by gas network operators. This includes:

• Safety and reliability targets
• Customer satisfaction metrics
• Environmental incentives, such as methane reduction
• Innovation funding, including trials of hydrogen and biomethane

How gas suppliers use the transmission and distribution networks

Ofgem licenses domestic and business gas suppliers to sell natural gas to individual properties. Suppliers use the gas networks to deliver natural gas to their customers.

Gas suppliers coordinate the transport of gas through the NTS and regional gas distribution networks with licensed gas shippers.

Gas shippers buy natural gas on the wholesale gas market and arrange its transport through the NTS and relevant regional gas distribution networks to the end customer.

Each customer has a unique Meter Point Reference Number (MPRN), which is used to track how much gas they have consumed through meter readings.

Gas suppliers then issue domestic or business gas bills based on these readings, in line with the tariffs they have agreed with their customers.

💡 Our business gas comparison service helps companies across Britain find the cheapest gas tariffs available in their area.

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