UK Gas prices rise to a second quarter record

UK commercial gas prices are on the rise once again as European buyers drain fuel at a record pace and North Sea extraction diminishes. On the ICE Futures Exchange gas prices for next-month delivery increased 48% since the end of March.  Such rise in gas prices wasn’t seen since 2000, when prices rose 45%.

Exports to Europe through a pipeline linking Britain to Belgium jumped to the highest level in more than six years, as industries store up for winter, according to the operator Interconnector (U.K.) Ltd.  The increase follows a record 14% drop in North Sea output last year caused by dwindling reserves, Department of Energy and Climate Change data show.

“Continental buyers are able to take more gas than they were previously and that’s firming up prices,” Graham Freedman, a Senior Analyst at Wood Mackenzie Consultants Ltd.

To top things up,  fears of a potential North Sea strike made UK prompt gas price fluctuate on Wednesday.

Norwegian oil and gas workers may call a strike from Wednesday night if talks between unions and operators about pay fail, the industry association said.

Three unions notified operators this week that around 400 members at the Draugen field, operated by Royal Dutch Shell PLC (RDSB), and Gullfaks B and Gullfaks C, operated by Statoil ASA (STO), will strike if an agreement isn’t reached by midnight.

Gas for Thursday was pegged at 44.75 pence a therm, up from prices below 40p/them last week, while gas for July is at 44.55p/therm and August at 45.80p/therm, market participants said.

“These strikes could impact things but not much.  They won’t affect Norway’s gas deliveries. That is too important to the country at a strategic level,” one gas trader said.

“There is talk there was activity by a Norwegian producer on the prompt Tuesday, but within-day [gas] has been sold down as strikes would take only a small amount of gas out of the National Balancing Point,” a second UK gas trader said.

Gas Traders said liquidity in the market was low on Wednesday as many participants were away from their desks at an industry event. “Some may take the opportunity to move either way due to thin volume,” one London-based gas trader said.

Further information on the latest commercial gas prices, including charts can be found here.

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1. [...] UK Gas prices rise to a second quarter record June 18, 2010 by drointer via catalyst-commercial.co.uk [...]

   Pingback by UK Gas prices rise to a second quarter record « UK Business Gas Prices — June 18, 2010 @ 9:10 am

2. Gas prices rise to a second quarter record…

   The US, which has historically competed with the UK for LNG cargoes, may actually start producing LNG and exporting it to the UK for the first time, if plans just announced by US terminal company Cheniere come to fruition. Cheniere says it intends to…

   Trackback by social.weehz.com — June 18, 2010 @ 9:19 am

3. Gas prices rise to a second quarter record…

   Gas prices go up and down all of the time, this you have to accept. What you also have to do is work out what drives the market and then the prices, and make purchasing decisions based on these likely events….

   Trackback by socialwebcms.com — June 21, 2010 @ 9:26 am

4. UK Gas prices rise to a second quarter record…

   An increased rate of LNG deliveries is predicted in the second half of June, which could improve supply, while forecasts predict warmer temperatures, which could reduce demand…

   Trackback by smash-up.com — June 24, 2010 @ 6:30 am

5. Record gas prices on the increase…

   Gas prices go up and down all of the time, this you have to accept. What you also have to do is work out what drives the market and then the prices, and make purchasing decisions based on these likely events….

   Trackback by smash-up.com — June 24, 2010 @ 10:21 am

6. Gas prices rise to a second quarter record…

   Gas prices go up and down all of the time, this you have to accept. What you also have to do is work out what drives the market and then the prices, and make purchasing decisions based on these likely events….

   Trackback by smash-up.com — June 26, 2010 @ 4:33 am

7. UK Gas prices rise to a second quarter record…

   Gas prices go up and down all of the time, this you have to accept. What you also have to do is work out what drives the market and then the prices, and make purchasing decisions based on these likely events….

   Trackback by smash-up.com — June 27, 2010 @ 11:40 pm

8. Record gas prices on the increase…

   The US, which has historically competed with the UK for LNG cargoes, may actually start producing LNG and exporting it to the UK for the first time, if plans just announced by US terminal company Cheniere come to fruition. Cheniere says it intends to…

   Trackback by smash-up.com — June 28, 2010 @ 1:48 am

9. Record gas prices on the increase…

   An increased rate of LNG deliveries is predicted in the second half of June, which could improve supply, while forecasts predict warmer temperatures, which could reduce demand…

   Trackback by smash-up.com — November 5, 2010 @ 2:39 pm

10. Gas prices rise to a second quarter record…

    The US, which has historically competed with the UK for LNG cargoes, may actually start producing LNG and exporting it to the UK for the first time, if plans just announced by US terminal company Cheniere come to fruition. Cheniere says it intends to…

    Trackback by smash-up.com — November 24, 2010 @ 2:28 am

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