Tweet
Apparently gas traders in Europe haven't heard there's a recession on and demand for energy will therefore be "crashing".
Good thing the recession is going to bring inflation back under control in Blighty and around the world, eh...
Wholesale gas prices jump 14% after leak in North Sea pipeline
UK wholesale gas prices soared by more than 14% yesterday after a leak on a North Sea pipeline prompted fears about scarce supplies this winter.
Norway's oil and gas producer Statoil Hydro said it discovered the leak on a gas pipeline linking its Kvitebjoern field to an onshore processing plant.
The firm closed the pipeline, which pumps an estimated 5% of Norway's total gas output, and warned it could remain shut until 2009.
Norway is a significant source of gas supplies to the UK, which now imports around 40% of its gas due to dwindling North Sea stocks.
The announcement sent the forward price of gas for delivery to Britain this winter escalating to 104p per therm from 90.75p per therm at the start of the day.
This is above the record highs seen in June this year, when wholesale gas prices passed the £1 a therm mark on the back of rising oil prices, and around double the price this time last year...
..."The amount of gas available from Norway to countries, including the UK, will be cut significantly. Without adequate storage, the UK will be left to negotiate with Russia and the Far East for supplies or risk running low on energy."
He added that it was too early to say whether the wholesale price jump would be sustained.
Households in the UK have already seen gas and electricity bills soar this year due to the rising cost of wholesale gas and electricity.
Scottish Gas announced another 35% rise for gas bills last month, and 9% for electricity, with rival EDF increasing bills by up to 22%...
More...
| August 21 2008 |
UK wholesale gas prices soared by more than 14% yesterday after a leak on a North Sea pipeline prompted fears about scarce supplies this winter.
Norway's oil and gas producer Statoil Hydro said it discovered the leak on a gas pipeline linking its Kvitebjoern field to an onshore processing plant.
The firm closed the pipeline, which pumps an estimated 5% of Norway's total gas output, and warned it could remain shut until 2009.
Norway is a significant source of gas supplies to the UK, which now imports around 40% of its gas due to dwindling North Sea stocks.
The announcement sent the forward price of gas for delivery to Britain this winter escalating to 104p per therm from 90.75p per therm at the start of the day.
This is above the record highs seen in June this year, when wholesale gas prices passed the £1 a therm mark on the back of rising oil prices, and around double the price this time last year...
..."The amount of gas available from Norway to countries, including the UK, will be cut significantly. Without adequate storage, the UK will be left to negotiate with Russia and the Far East for supplies or risk running low on energy."
He added that it was too early to say whether the wholesale price jump would be sustained.
Households in the UK have already seen gas and electricity bills soar this year due to the rising cost of wholesale gas and electricity.
Scottish Gas announced another 35% rise for gas bills last month, and 9% for electricity, with rival EDF increasing bills by up to 22%...
More...
Comment