Britain has just two days’ worth of natural gas in storage, sparking fears of a shortage crisis as the Middle East conflict endangers supplies.
The UK’s gas reserves have dwindled from 18,000 GWh last year to 6,700 GWh, enough for just 1.5 days of demand, according to new data published by National Gas. There is a similar quantity stored as liquefied natural gas (LNG).
Europe is much better prepared to weather fluctuations in supply, with several weeks’ worth of gas stored up.
Because the UK has no choice but to outbid its European rivals, traders have been taking advantage of its predicament by charging it a higher petrol price.
The UK is now paying the highest wholesale gas price in Europe.
Disruption to the gas market is driven partly by the near-total closure of the Strait of Hormuz, through which about 20 per cent of the world’s natural gas and oil flows, and also by the shutdown of production in some places.
Qatar announced at the start of the week that it had suspended production at Ras Laffan, the world’s biggest natural gas installation, after it came under Iranian bombardment.
Natasha Fielding, head of gas pricing at Argus Media, a leading publisher of commodity data, said: ‘The price of gas in the UK has increased by more than almost anywhere in Europe.
‘The UK gas hub price is now above the Dutch TTF [the main European gas hub] all the way from now until the end of May. Before this week, the UK was priced below the EU.
She said this was partly because the UK’s meagre gas stockpiles leave us ‘more exposed to price spikes’, and added: ‘We can’t rely on withdrawing more from storage, so we have to get that gas from abroad.’
Ms Fielding said traders would be monitoring temperatures in Britain, and that if it gets cold, the UK would be more urgently compelled to outbid other countries for gas.
The UK used to have up to 12 days’ worth of gas in storage, but the system collapsed after successive government ministers removed its funding.
National Gas data showed that gas supplies were at 18pc of their former capability on Friday, while LNG stores were just over half full.
A National Gas spokesman said the UK gets most of its gas from Norway and its own North Sea.
Just imagine studying the history of Britain; it would most likely read, ‘The most boring ending in history.’
Of course, both the Conservatives and Labour have contributed to this. They were both content to destroy the UK, while of course benefiting financially while doing it.
Our government wanted a greener UK so that they could feed your children with grass – still no gas though!
Thatcher, Major, Blair, Brown and Cameron sold off almost every utility they could. They didn’t give a stuff about the people, not one of them!
I’m not saying that we should be more reliant on gas and oil, but until we can get a fully working, greener society, it’s gas and oil that we depend on.
Was going green a pipe dream? Well, perhaps not as long as it’s done in a way that benefits everyone. More affordable fuel for one would be amazing, but that won’t be the case, because initially when the government say they will do something, you know they will do the very opposite.
Our government come up with these pipe dreams – vanity projects for politicians, but they never plan anything because you’d need a brain for that, and this is a good example of the fools we have running our country!
THE MONTHLY MOSQUITO 