UK Natural Gas Prices Remain Elevated
UK natural gas prices rose above 216 pence per therm, hovering near their highest level in almost four years amid tight supply conditions. Gas exports from the Middle East, which accounted for around a fifth of global LNG supply before the war began, remained largely disrupted, with flows approximately 80% below year-earlier levels. European gas reserves are at their lowest levels since records began, heightening the region’s vulnerability to supply shocks and price volatility. The UK is particularly exposed due to its limited gas storage capacity of 1.7 billion cubic metres, equivalent to around seven days of average winter demand. As a result, the country relies heavily on domestic production and LNG imports for energy generation, leaving it exposed to price shocks. Meanwhile, the approval of the Jackdaw gas field could provide some relief, with production expected to begin later this month.
UK natural gas prices rose above 216 pence per therm, hovering near their highest level in almost four years amid tight supply conditions. Gas exports from the Middle East, which accounted for around a fifth of global LNG supply before the war began, remained largely disrupted, with flows approximately 80% below year-earlier levels. European gas reserves are at their lowest levels since records began, heightening the region’s vulnerability to supply shocks and price volatility. The UK is particularly exposed due to its limited gas storage capacity of 1.7 billion cubic metres, equivalent to around seven days of average winter demand.
As a result, the country relies heavily on domestic production and LNG imports for energy generation, leaving it exposed to price shocks. Meanwhile, the approval of the Jackdaw gas field could provide some relief, with production expected to begin later this month.