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
- Top 5 Funniest Gag Gifts for Your Best Friend
- Why Second Hand Pianos for Sale Are a Smart Investment
- Finding the Right Piano Shop Near Me: A Guide to Second Hand Pianos
- “Mira Sorvino: From Oscar Glory to Hollywood Silence.”
- Ireland Sino Institute Launches 2025 China Internship Program
- “Beyond the Spotlight: The Rise and Fall of Dorothy Dandridge.”
- “Through the Mist of Venice: Revisiting Don’t Look Now and Its Haunting Grip on Grief.”
- The Art of Coaching: Cultivating Growth and Inspiration
- Creating a Holistic Backyard Retreat: Old World Elegance Meets Nature
- Understanding T1 and T2 Transit Documents in EU: Your Complete Guide
- Cryptonews.money: Your Ultimate Guide to Understanding Cryptocurrency
- 15 Basketball Dribbling Games and Passing Drills for Better Ball Handling
- Transdermal Progesterone Cream: Benefits for Hot Flashes and Menopause Symptoms
- Tepezcohuite: The Ancient Skin Health Secret You Need to Know
- Quiet Cars and Busy Calendars: The Overlooked Role of Chauffeurs in Post-July Corporate Travel
- 1031 Exchange
- Breaking Karmic Cycles, Creating a Shiva Altar with Deity Carvings and Sculptures from Mogul Interior
- The Art of Whimsical Carved Wall Art & Eclectic Décor
- “Hellfire and Heresy: Ken Russell’s The Devils and the Fury of Sacred Cinema.”
- Transform Your Bedroom into a Productive Haven: Ultimate Guide to Bedroom Inspirations with Desk
- “Heatwave: When Crime, Character, and Two Legends Collided in Michael Mann’s L.A.”
- Steam Vs. Scrub: The Best Chemical-Free Tools For Cleaning Tile Edges And Grout
- A Smart Solution for Clean Environments: Hygienic PVC Wall Cladding
- Choosing the Right Stainless Steel Panel Adhesive for Durable Wall Cladding Installations
- How to Choose the Right PVC Panel Adhesive for a Professional Finish
- Precision Finishing with Steel Cladding Profiles and Trims
- The Finishing Touch: PVC Cladding Trim & Profiles for a Seamless Installation
- Lightweight Strength: Why Aluminum Cladding Sheets Are a Smart Choice for Modern Projects
- Durable and Hygienic: Why Stainless Steel Wall Cladding is the Industry Standard
- Transform Your Interiors with PVC Ceiling Panels and Planks