Measures to exploit new technology to increase UK gas supplies will allow firms to store gas in huge salt caverns under the sea, Trade Secretary Alan Johnson has announced.

The measures, outlined in the first parliamentary debate on security of supply under the Energy Act 2004, include:

• New laws to enable firms to create salt caverns off the UK coast to store and retrieve gas, and to allow liquefied natural gas (LNG) tankers to unload offshore. The current legal framework does not take account of the latest technological developments.
• Examining the current regulations for onshore gas supply infrastructure and updating those regulations where necessary. This will be done in conjunction with the Energy Review and the Barker Review of Land Use Planning.

Secretary of State for Trade and Industry Alan Johnson said: "North Sea gas reserves are declining quicker than expected, we are importing more gas, and gas supply technology is developing rapidly. We need to plan ahead today so that we will be able to meet our energy needs tomorrow."

"As well as increasing our storage capacity, new pipelines from Norway and the Netherlands will deliver up to a third of our annual gas needs in the next few years with an additional ten new onshore gas storage projects being developed in the UK."

Storing gas in salt caverns enables firms to retrieve gas rapidly to cope with spikes in peak demand. The British Geological Survey (BGS), in a report commissioned by the DTI, highlighted a number of offshore areas suitable for salt caverns. They include the Irish Sea, and the southern North Sea and there is already commercial interest in developing projects.

Salt caverns have been used to store liquid petroleum gas (LPG) for many years, but the technique is relatively recent for pressurised natural gas. It was first introduced in the United States in 1961 and today there are around 54 salt cavern storage facilities around the world, 26 of which are in the United States.