Understanding the Inconstancy of United Kingdom Gas Prices
- Author Felipe Bazon
- Published May 30, 2011
- Word count 384
Back in the days when the UK was self sufficient for natural gas few factors changed gas prices. They were weather and demand, nowadays, the UK gas market has become more complicated and several factors have a head-on effect on prices.
With the decline of North Sea gas production the UK went from being self sufficient and an exporter of natural gas to being a net importer. This has induced many changes to the United Kingdom gas market, for the most part in business and commercial gas prices buoyancy.
Since 1998 when the first pipeline between the United Kingdom and Europe was opened UK gas prices were automatically devoted to European oil indexed prices. Since then, UK gas prices were determined by marginal transactions. Basically if oil prices raise so does UK gas prices.
Recently a new factor has come into play which brought a more global component to business and commercial gas prices, the imports of LNG (liquefied natural gas) cargoes. According to market experts, over time LNG imports could account for 50% of total UK gas supply which will make UK gas prices compete with American and Asian markets.
The largest issue with LNG imports nowadays is where to store it so a number of LNG import terminals are under construction, with two new large terminals in Wales due to be completed later this year and further expansion at Isle of Grain near London.
Climate and demand still have their influence in business and commercial gas prices. But this winter gas traders saw a different sequence of events; with temperatures way below seasonal average which pushed gas for heating consumption to sky high levels, wholesale gas prices dropped.
Normally with the colder climate gas prices tend to rise due to an increase in demand. This winter a steady supply from Norway and the Netherlands plus strong LNG imports kept the gas prices at low levels.
"Before trading gas in the UK Market was rather simple. Now things have become more complex and we have to keep an eye on several factors in order to deliver the best prices for our costumers" stated a business gas broker.
To sum things up, natural gas is an important factor of the UK fuel mix in electricity generation and it has great influence in United Kingdom energy prices.
Business gas broker specialised in finding the best business gas prices and commercial gas prices for UK businesses.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Golden Roots: How Turmeric Became the World’s Most Powerful Natural Healer.
- “Greta Gerwig and the Rise of Women Behind the Camera in Hollywood.”
- “The Crown of Cinema: From Citizen Kane to The Godfather.”
- The Miracle of Mother’s Milk: Unveiling the Lifelong Benefits of Breastfeeding.
- The Evolution of James Bond: Six Decades of Cinema’s Most Enduring Spy.
- Pumpkin Spice, But Make It Office-Friendly: A Beginner’s Halloween Makeup You Can Wear to Work
- The Man Behind the Cape: The Life and Tragic Fall of George Reeves.
- Is Learning to Drive in an Automatic Car Easier? — Expert Answers from Autogear Driving School Glasgow
- Nature’s First Superfood: Why Breast Milk Is the Ultimate Nourishment for Your Baby.
- Decorating the Humble Ranch House This Holiday Season with Vintage Carved Wood Furniture
- Personalized Carved Wood Doors: Your Gateway to Resort-Style Living at Home
- Cozy Neutrals and Natural Textures: Creating Your Deep, Lived-In Sanctuary
- Home for the Holidays: Creating Wholesome Spaces with Vintage Furniture and Antique Carved Doors
- Beyond the Buzzword: Understanding the Difference Between Ketosis and the Ketogenic Diet.
- The 24-290 mm Paradox: Why a 12× Zoom from 2001 Still Outresolves Today’s 8K Sensors
- The Power of Ketosis: Unlocking Your Body’s Hidden Energy Source.
- Navy Veteran With Dementia Found Dead in Assisted Living Freezer!
- Fueling the Future: Why Ketosis Is the Key to Lasting Energy and Metabolic Health.
- The Genetic Stew
- Common challenges in IT modernization
- Naka Solutions Reviews: Innovation, Quality Service, and Trader Trust
- The Style Upgrade: Why Coretec Floors Outshine Traditional Vinyl
- Ketosis Unlocked: The Science Behind Your Body’s Natural Fat-Burning State.
- Luxury Morocco Shore Excursions: Discover Authentic Beauty in Comfort and Style
- The Silent Disruptor: Understanding How Thyroid Imbalance Affects Your Body.
- Fehmi Lights Inc. & Fehmi Lites Manufacturing Co. – Shaping the Future of Illumination
- Thyroid and Hormone Harmony: The Delicate Balance That Shapes Your Health.
- Discover Morocco with Face Tours: Authentic Journeys Across the Kingdom
- The Thyroid Connection: How This Small Gland Controls Big Changes in Your Body.
- Morocco: The Rising Star of African Tourism — A Journey Through Culture, Desert, and Hospitality