UK Energy Brokers, Catalyst, have reported that the energy market has grown more complex due to recent global events, but especially because of the effect of increased use of Liquified Natural Gas fuel.
LNG’s rise over the last 50 years brought a global element to commercial gas prices, say Catalyst. They predict that soon the UK will be importing as much as 50% of its total gas supply from LNG.
Volatile UK gas prices are not simply down to troubles in North Africa, but seem to be affected by Japan’s change of energy use following the March 11 earthquake.
The troubles in Egypt and now Libya made crude oil prices surge over the $120 mark, resulting in UK prices peaking at its highest in more than 21 months.
Since the earthquake in Japan and the resulting shut down of several of its nuclear power plants, consumption of LNG has risen, leading to “the likelihood of LNG tankers being diverted from the UK to Japan.”