GasRenewal.co.uk
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Never has energy been in the headlines so often. There are two main reasons for the high gas prices:
- In the 1970's gas prices were linked to oil to give price stability - see price curve at bottom of this page.
- The UK has become a net importer of natural gas for the first time.
A new pipeline opened from Norway on 1st Oct 2007 and millions of cubic metres of gas flooded into the UK. The Ormen Lange gas field will produce 70 million cubic metres a day and last between 10-15 years. Analyst believed this will drive down prices from 2007.
Unfortunately Norway built a spur onto this pipeline to Europe. In 2008 the Norwegian energy minister told the world that the UK was not a priority market. Hence we will not receive the security promised.
LNG was to be shipped into four main terminals from Quatar to supply 20% of our needs. The terminal completed on Teeside in January 2007 has yet to take a single shipment! The rest of the world is buying it at better prices than the UK.
How much is wholesale gas?
At present (July 08) the price that suppliers are paying for your gas to be delivered in early 2009 is 3.85 p/kWh
The uncertainty in the market, the lack of bulk storage in the UK and the reliance on gas to generate electricity make have pushed prices higher and higher.
Business Gas
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