A new report published by National Grid Plc. has shown that investment in new pipelines and storage facilities has improved the outlook for supplies this winter.

Britain will have access to an extra 73m cubic metres of gas per day, an increase of around 15% on last year, but National Grid have warned that consumers are unlikely to see any benefit this winter, with energy firms set to leave prices on hold because of the increasing cost of wholesale gas.

Forwards gas prices for January to March 2008 are currently around 49p a therm amid record oil prices, continued risks to production from the hurricane season and the threat of higher demand in a colder winter in Europe.

Energy regulator Ofgem also added that the improved supplies had already been factored into gas prices for the winter.

However, National Grid warned there continue to be risks and uncertainties such as the possibility of cold weather diverting supplies away from the UK, or major damage to gas networks preventing imports getting through.

British Gas owner Centrica reiterated that it is unlikely to implement further cuts to fuel bills, following similar comments from chief executive Sam Laidlaw at the group's interim results last month.

The Langeld Pipeline from Norway brings up to 20% of our gas directly into the UK

Centrica added that while the improvements to infrastructure would help boost gas supplies for now, the UK needed to maintain its investment in importing gas as the UK's reserves in the North Sea continue to decline.

Ofgem said a significant contribution to the improved supply situation would come from the connection of the Langeled pipeline to Norway's Ormen Lange gas field, which is being tested now and is expected to enter service at the start of October.

Gas storage facilities also increased with a new facility at Aldbrough in East Yorkshire and the expansion of an existing facility at Hole House Farm, Cheshire.

Britain's third liquid natural gas (LNG) import facility, the Dragon terminal at Milford Haven, is expected to be up and running by January and a further expansion of the new pipeline link with Holland has already taken place.

Ofgem chief executive Alistair Buchanan said: 'More investment means we have the potential to import and store more gas this winter than last.

'While this is welcome news, we must not forget we are vulnerable to fluctuations in global energy prices,' he said.

'Nobody can predict with any certainty how severe a winter we may have, or what may happen to global energy prices, so there is no room for anyone to drop their guard this winter.'

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Sources: http://www.hemscott.com/ | http://www.pressassociation.co.uk/

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